Which of the following best describes operating income?
A)It includes the results of discontinued operations.
B)It is before operating expenses.
C)It is sales minus cost of goods sold and income tax expense.
D)It is net sales minus cost of goods sold and operating expenses.

Question

Quizplus · Accepted Answer

Operating income is calculated as net sales minus cost of goods sold and operating expenses. It does not include the results of discontinued operations and is not before operating expenses.

Which of the Following Best Describes Operating Income