Answer:
True
Explanation:
The formula to compute the gross profit or gross margin is shown below:
As we know that
The gross profit equals to
Gross profit = Sales revenue - cost of goods sold
And, the cost of goods sold equals yo
Cost of goods sold = Opening stock + purchase - closing stock
So after deducting the cost of goods sold from the sales revenue we can get the gross profit or gross margin
Hence, the given statement is true
