Operating income divided by sales is ________.
A) residual income
B) capital turnover
C) return on investment
D) return on sales

Question

Quizplus · Accepted Answer

Operating income divided by sales is commonly known as the return on sales or ROS, which indicates the percentage of profit generated from each dollar of sales revenue. It helps assess a company's operational efficiency, profitability, and pricing strategy. Typically, the higher the ROS, the better it is for the business as more profit is generated from sales.

Operating Income Divided by Sales Is ________