What Does the Operating Ratio Measure

question 15

Multiple Choice

What does the operating ratio measure?

• A) number of seats sold divided by miles operated
• B) operating expense divided by operating income
• C) stock share price divided by the total number of shares outstanding
• D) number of airplanes in the fleet divided by miles flown by type

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Definitions:

OLAP

Online Analytical Processing; a category of software tools that provides analysis of data stored in a database and supports complex analytical and ad-hoc queries, usually in multiple dimensions.

Upselling

A sales technique where sellers encourage customers to purchase higher-end products, upgrades, or add-ons to generate more revenue.

Sales Transaction

The process of exchanging goods, services, or assets in return for money between a seller and buyer.

SFA

Acronym for Sales Force Automation, a system used to automate sales tasks, processes, and documentation, enhancing sales team efficiency.