________ is gross profit minus operating expenses.

Question

Quizplus · Accepted Answer

Operating income is defined as gross profit minus operating expenses. It is also known as operating profit or earnings before interest and taxes (EBIT). This metric is widely used to measure a company's profitability from its core operations. Net income (choice B) is the final profit metric after all expenses, including interest and taxes, have been deducted from revenues. Cash flow (choice C) is the amount of cash coming in and going out of a business, which can be positive or negative depending on the situation. Leverage (choice D) refers to the use of borrowed funds or debt to finance a company's operations or growth.

________ Is Gross Profit Minus Operating Expenses