Which term refers to the deduction of costs in relation to sales in a department?

The term that accurately reflects the deduction of costs in relation to sales in a department is gross profit. Gross profit is calculated by taking the total revenue generated from sales and subtracting the cost of goods sold (COGS). This figure illustrates how much money is left over after accounting for the direct costs associated with producing the goods or services sold.

In the context of a department, understanding gross profit is crucial because it helps retailers identify the profitability of their products, inform pricing strategies, and manage inventory effectively. It is a key metric used in assessing the performance of a department within a retail business, as it focuses on the efficiency of sales relative to direct costs.

Net revenue, on the other hand, pertains to total sales after returns, allowances, and discounts, while net profit accounts for all expenses, including operating expenses, taxes, and interest. Gross revenue refers to total sales before any deductions. Therefore, while each of these terms plays a role in financial reporting, gross profit specifically highlights the relationship between costs and sales, making it the best choice in this context.