Operating margin is the same as operating revenues in CVP analysis.

Question

Quizplus · Accepted Answer

Operating margin and operating revenues are not the same. Operating margin is a measure of profitability, calculated as operating income divided by total revenue, while operating revenue is simply the amount of revenue generated from operations. It is important to distinguish between the two concepts in CVP analysis as they are used to calculate different metrics.

Operating Margin Is the Same as Operating Revenues in CVP