Answer :
Answer:
(c) operating expenses
Explanation:
The formula to compute the income from operations is
Income from operations = Gross profit - operating expenses
where,
Gross profit = Sales revenue - cost of goods sold
And, the cost of goods sold is direct material cost, direct labor cost, etc
The operating expenses includes the day to day expenses like selling expenses, administrative expenses, etc
Answer:
A. Income from Operations :-
GrossProfit - Operating expenses
Explanation:
Operating Profit / Income [Income from Operations] is the profit from business core transactions, not from business' other side investments etc.
Gross Profit is excess of business core transaction revenues over its direct (manufacturing) costs .
Gross Profit = Net Sales - Direct production 'cost of goods sold'
Operating Profit is excess of business core transaction revenues over its direct (manufacturing) & indirect (selling) costs.
Operating Profit = Net Sales - Direct production 'cost of goods sold' - other operating i.e selling & management expenses