What Is the Formula to Calculate Operating Income

question 151

Multiple Choice

What is the formula to calculate operating income?

• A)sales revenue − cost of goods sold − selling and administrative expenses
• B)gross margin − selling expenses + selling and administrative expenses
• C)sales revenue − cost of goods sold + selling and administrative expenses
• D)sales revenue − selling and administrative expenses

---

Definitions:

Possible Losses

Potential or anticipated losses, which could be in terms of finances, opportunities, well-being, or other valuable aspects.

Possible Gains

The potential benefits or positive outcomes that might be achieved from a particular action or decision.

Error Management Theory

A theory suggesting that humans are evolved to favor strategies that minimize the more costly type of errors in the dual nature of decision-making errors: false positives and false negatives.

Self-determination Theory

A psychological theory focused on motivation, particularly intrinsic forms of motivation, and the role of autonomy, competence, and relatedness in fostering well-being.