Which of the Following Formulas Is Used to Compute Operating

question 110

Multiple Choice

Which of the following formulas is used to compute operating income?

• A)Operating income = Sales revenues − Depreciation expenses − Fixed expenses
• B)Operating income = Sales revenues − Variable expenses − Fixed expenses
• C)Operating income = Sales revenues + Fixed expenses − Target profit
• D)Operating income = Sales revenues − Tangible expenses − Target profit

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Definitions:

Survey

A method of gathering information from a sample of individuals, typically by questioning them.

Observer Bias

The tendency of observers to see what they expect to see.

Observer Effect

The phenomenon where the act of observing or measuring a system affects the system itself.

Observer Effect

The observer effect refers to changes that the act of observation can make on a phenomenon being observed.