Operating Income Is Calculated as Net Sales Minus

question 116

Multiple Choice

Operating income is calculated as net sales minus.

• A)Utilities expense.
• B)Salaries expense.
• C)Cost of goods sold.
• D)All of the other answers are subtracted from net sales to calculate operating income.

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Definitions:

Merchandising

The practice of promoting the sale of goods, often by their presentation in retail outlets.

Merchandiser

A person or company responsible for the promotion and sale of products, often in retail environments.

Low-margin Products

Products that generate a small profit margin, typically because of low prices relative to the cost of goods sold.

Specialty Store

A store that concentrates on selling one line of goods or services and carries a narrow but deep merchandise assortment.