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Question : ______________ratio measures the proportion of an enterprise's cost of Revenue from Operations and operating expenses in comparison to its Revenue from Operations.

Option 1: Gross profit ratio

Option 2: Net profit ratio

Option 3: Operating profit ratio

Option 4: Operating ratio


Team Careers360 8th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Operating ratio


Solution : Answer = Operating ratio.

The operating ratio establishes the Relationship Between operating cost and revenue from operation. The operating ratio assesses the efficiency of a company's operations by comparing its cost of revenue from operations and operating expenses to its revenue from operations. It reveals the percentage of revenue utilized for operational costs.
Hence, the correct option is 4.

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