Which term describes the calculation of sales minus cost of sales?

The term that accurately describes the calculation of sales minus cost of sales is Gross Profit. It represents the financial outcome of a company's core operations before any indirect expenses, taxes, and other costs are accounted for.

Calculating Gross Profit offers insight into a company's ability to generate profit from its sales activities. It reflects how effectively a business is managing its production costs relative to its sales revenues.

Other terms, while related, refer to different concepts. Gross Revenue refers to the total sales before any deductions, while Net Income accounts for total revenues minus all expenses, including operating costs and taxes. Gross Margin, on the other hand, is typically expressed as a percentage and represents Gross Profit relative to sales revenue, highlighting what percentage of sales is retained as profit after the cost of goods sold has been deducted.