Positive operating income will result if gross profit exceeds a. costs of goods sold. b. salaries...
Question:
Positive operating income will result if gross profit exceeds
a. costs of goods sold.
b. salaries and wages expense.
c. cost of goods sold plus operating expenses.
d. operating expenses.
Operating Income:
Operating income is also known as earnings before interest and expense. These is computed by deducting the cost of goods sold and the operating expenses to the net sales during the period.
Answer and Explanation: 1
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View this answerThe answer is d. operating expenses.
| Amount | |
|---|---|
| Sales | xxx |
| Less: Cost of Goods Sold | xxx |
| Gross Profit | xxx |
| Less: operating Expenses | xxx |
| Operating Income | ... |
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