Which of the following is subtracted from Gross profit to arrive at Operating income?
A) Cost of goods available for sale
B) Cost of goods sold
C) Sales discounts and Sales returns and allowances
D) Operating expenses

Question

Quizplus · Accepted Answer

Operating expenses are subtracted from Gross Profit to arrive at Operating Income. Gross Profit is calculated by subtracting the Cost of Goods Sold from Net Sales, and then Operating Expenses (like salaries, rent, utilities, etc.) are subtracted to find the Operating Income.

Which of the Following Is Subtracted from Gross Profit to Arrive