Which of the following can be inferred from calculating a company's operating margin?
A)an organization's competitive advantage
B)how efficiently an organization is using its resources
C)whether the organization has the resources available to meet the claims of short-term creditors
D)how efficiently managers are turning inventory over
E)how efficiently managers are collecting revenue from customers

Question

Quizplus · Accepted Answer

Operating margin is calculated by dividing a company's operating profit by sales revenues.This measure tells managers how efficiently an organization is using its resources; for example, every successful attempt to reduce costs will be reflected in increased operating profit.

Which of the Following Can Be Inferred from Calculating a Company's