Operating Profit Calculations DO NOT Use

question 27

Multiple Choice

Operating profit calculations DO NOT use:

• A)operating costs.
• B)income tax expense.
• C)cost of goods sold.
• D)revenue.

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Definitions:

Business Revenue

The total income generated by a company from its normal business operations before any expenses are subtracted.

Percent Reduced

A measure of how much a number or value is decreased expressed as a percentage.

Post-Christmas Sale

A marketing event where retailers offer significant discounts on merchandise following the Christmas holiday to reduce inventory.

Percent Increase

A measure of the degree to which a quantity has grown compared to its original value, expressed as a percentage.