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Question
Operating profit is __________ of operating revenue over operating expense.
Operating profit is __________ of operating revenue over operating expense.
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Solution
The correct option is A excess
Operative profit means the profit generated through normal business operations. Excess of operating revenue over operating expenses is called operating profit.
This can be shown below:
Sales Rs.100000 Less: Cost of Goods Sold Rs. 75000 --------------------Gross Profit Rs. 25000Less: Operating Expenses Rs. 15000 -------------------Operating Profit Rs. 10000 ------------------
Operative profit means the profit generated through normal business operations. Excess of operating revenue over operating expenses is called operating profit.
This can be shown below:
Sales Rs.100000
Less: Cost of Goods Sold Rs. 75000
--------------------
Gross Profit Rs. 25000
Less: Operating Expenses Rs. 15000
-------------------
Operating Profit Rs. 10000
------------------
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