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Business Studies

Organisational Objectives

Operating Cos...

Question

Operating Cost is equal to _________________.

A

Cost of Goods Sold + Operating Cost

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B

Cost of Goods - Operating Expenses

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C

Sales - Gross Profit

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D

Sales - Operating Profit

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Solution

The correct option is C Sales - Operating Profit
Operating cost = sales - operating profit
Operating cost include all the costs that are related to the business directly. By deducting operating profit from sales we will get the operating cost of the business.

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Similar questions

Cost of goods sold plus operating expenses = __________.

Q. Operating Ratio 92%; Operating Expenses ₹94,000; Revenue from Operations ₹6,00,000; Sales Return ₹40,000. Calculate Cost of Revenue from Operations (Cost of Goods Sold).

___ is the ratio of cost of goods sold plus operating expenses to net sales.

Q. Calculate Operating Profit Ratio,in each of the following alternative cases:
Case 1: Revenue from Operations (Net Sales) ₹ 10,00,000; Operating Profit ₹ 1,50,000.
Case 2: Revenue from Operations (Net Sales) ₹ 6,00,000; Operating Cost ₹ 5,10,000.
Case 4: Revenue from Operations (Net Sales) ₹ 3,60,000; Gross Profit 20% on Sales; Operating Expenses ₹ 18,000
Case 4: Revenue from Operations (Net Sales) ₹ 4,50,000; Cost of Revenue from Operations ₹ 3,60,000; Operating Expenses ₹ 22,500.
Case 5: Cost of Goods Sold, i.e., Cost of Revenue from Operations ₹ 8,00,000; Gross Profit 20% on Sales; Operating Expenses ₹ 50,000.

Q. If sales are

R s . 40, 000

; Cost of goods sold is

R s . 31, 000

and operating expenses are

R s, 6, 000

, the gross profit is ______________.

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