In cost accounting, the financial way of charging price for product above the cost, of acquiring or producing the goods is known as ___________?
Correct answer: C. Gross margin
- A. sales margin
- B. cost margin
- C. Gross margin
- D. income margin
Explanation
Gross margin is the excess of selling revenue over the cost of goods sold, representing the amount earned above the product’s acquisition or production cost. A markup is the related pricing concept, but it is not among the listed options.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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