32 Views
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 + Operating Expenses/Net Revenue from Operations
Option 1: Option A
Option 2: Option B
Option 3: Option C
Option 4: None of them
Answer (1)
Correct Answer: Option C
Solution :
Operating Ratio =(Cost of revenue from operations + Operating Expenses) / Net Revenue from Operations
By comparing a company's total operating expense to net revenues, the operational ratio demonstrates the management effectiveness of that business.
Hence option 3 is the correct answer.
Related Questions
Graphic Era (Deemed to be Uni...
Apply
NAAC A+ Grade | Among top 100 universities of India (NIRF 2024) | 40 crore+ scholarships distributed
MAHE Manipal Liberal Arts Adm...
Apply
Accorded Institution of Eminence by MoE, Govt. of India | NAAC A++ Grade | Ranked #4 India by NIRF 2024
UPES Dehradun -Media and Mass...
Apply
Ranked #46 Among Universities in India by NIRF | 1950+ Students Placed | 91% Placement