Operating profit is essentially a measure of how efficient management is in generating revenues and controlling expenses.

Question

Quizplus · Accepted Answer

Operating profit is a measure of profitability that reflects how well a company's management is generating revenue and controlling costs in its core operations. It is calculated by subtracting operating expenses from revenue. Thus, a higher operating profit indicates better management efficiency and higher profitability.

Operating Profit Is Essentially a Measure of How Efficient Management