Gross profit less direct operating expenses equals

Question

Quizplus · Accepted Answer

Gross profit is revenue minus cost of goods sold, and direct operating expenses are expenses that are directly related to producing and selling goods or services. Therefore, gross profit less direct operating expenses equals direct operating margin, which shows how much profit is generated from each dollar of revenue after accounting for the direct costs of producing and selling goods or services. This is an important measure of profitability for businesses. Options A, B, and D are not correct because they do not accurately describe the calculation being performed.

Gross Profit Less Direct Operating Expenses Equals