Gross Cost of Merchandise Sold

Definition

Gross cost of merchandise sold is the gross cost of merchandise handled less the closing inventory at cost.

The gross cost of merchandise sold is subtracted from net sales to calculate maintained markup.

Maintained markup is then adjusted by cash discounts and workroom costs to determine gross margin of profit.[1]

See also

• Retail inventory method of accounting

 

References

1. ^ American Marketing Association, AMA Dictionary.