Operating Profit Margin Is

question 79

Multiple Choice

Operating profit margin is

• A) Gross margin minus operating expenses.
• B) Cost of goods sold minus gross margin.
• C) Net sales minus gross margin
• D) Operating expenses minus gross margin.
• E) Operating expenses divided by net sales.

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Definitions:

Manufacturing Overhead Costs

The indirect costs associated with manufacturing, including costs related to running the factory floor that are not directly traceable to specific units of products.

March

The third month of the year in the Gregorian calendar, known for marking the transition from winter to spring in the Northern Hemisphere.

Fixed Manufacturing Cost

Expenses that do not vary with the level of production output, including salaries of managers, lease payments, and maintenance.

Units Produced

The total number of units of product manufactured during a specific time frame.