Operating Margin Is Defined As

question 9

Multiple Choice

Operating margin is defined as:

• A) operating income or loss divided by net sales revenues.
• B) operating income or loss divided by total operating expenses.
• C) net sales revenues divided by net income or loss.
• D) net assets divided by net liabilities.

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Definitions:

Derived Demand

Derived demand refers to the demand for a good or service that originates from the demand for another good or service.

Final Demand

The demand for finished goods and services by consumers, businesses, and government, excluding intermediate goods.

Selling Price

The amount of money for which something is sold, determining the profit or loss made from a transaction.

Close Substitutes

Products or services that can easily replace each other in the eyes of the consumer, having nearly the same utility or function.