The formula used to calculate the operating income is ________.
A)operating income = sales revenues + cost of goods
B)operating income = sales revenues - cost of goods - SGA expenses - other operating expenses
C)operating income = cost of goods + SGA expenses + other operating expenses
D)operating income = sales revenues - SGA expanses
E)operating income = sales revenues + cost of goods + SGA expenses + other operating expenses

Question

Quizplus · Accepted Answer

Operating income is the amount earned from a company's normal operations after subtracting all the operating expenses, such as cost of goods sold, salaries and wages, rent, utilities, and depreciation, from the revenues. Hence, the formula used to calculate the operating income is operating income = sales revenues - cost of goods - SGA expenses - other operating expenses.

The Formula Used to Calculate the Operating Income Is ________