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
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.
Question : What is the formula for the Operating ratio?
Question : What is the formula of the Operating ratio choose the correct option: (A)Cost of revenue from operations + Selling Expenses/Net revenue from operations (B) Cost of production + Operating Expenses/Net revenue from operations (C) Cost of revenue from operations
Question : ___________measures the relationship between Operating Profit and Revenue from Operations, i.e., Net Sales.
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