The Ratio of Operating Income to Sales Is Termed the Profit

question 25

True/False

The ratio of operating income to sales is termed the profit margin component of the return on investment.

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Definitions:

Mark-up

A rephrased definition: The amount by which the selling price of an item exceeds its cost price, expressed as a percentage of the cost.

Markdown

A reduction from the original or retail price of a good or service to increase its attractiveness to buyers.

Operating Expenses

Expenses related to the routine functioning of a company, not including the expenses of products sold.

Operating Profit

Profit earned from a firm's core business operations, excluding deductions of interest and tax.