Profit from operations will result if
A) the cost of goods sold exceeds operating expenses.
B) revenues exceed cost of goods sold.
C) revenues exceed operating expenses.
D) gross profit exceeds operating expenses.

Question

Quizplus · Accepted Answer

Profit from operations occurs when the gross profit (revenue minus cost of goods sold) exceeds operating expenses. This means the company has effectively managed its core business operations to generate more revenue than the combined costs of goods sold and operating expenses.

Profit from Operations Will Result If