Operating margin is also referred to as
A) rate of return on sales.
B) operating income.
C) gross margin.
D) earnings per share.

Question

Quizplus · Accepted Answer

Operating margin is often referred to as the rate of return on sales because it measures the percentage of revenue that remains after paying for variable costs of production, such as wages and raw materials, but before paying interest or tax. It provides insight into the efficiency of a company's core business operations.

Operating Margin Is Also Referred to as