Which of the following would be subtracted from gross profit to determine operating income?

Question

Quizplus · Accepted Answer

Operating expenses are the expenses incurred in the normal course of operating a business, such as salaries, rent, utilities, and advertising. These expenses are subtracted from gross profit to determine operating income. Other expenses, such as interest expense and non-operating losses, are not part of operating income. Income taxes are typically calculated as a percentage of operating income, and are therefore not subtracted from it.

Which of the Following Would Be Subtracted from Gross Profit