Which statement correctly differentiates gross profit and gross margin?

Which statement correctly differentiates gross profit and gross margin?

• A. Gross profit is a dollar amount; gross margin is a percentage of revenue.
• B. Gross profit and gross margin are interchangeable terms for profitability.
• C. Gross profit includes depreciation expense; gross margin excludes it.
• D. Gross profit is the total revenue minus cost of goods sold; gross margin is gross profit divided by revenue.

Answer: (D)