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Answer: c. Operating profit ratio The ratio of net profit before interest and tax to sales is called the operating profit ratio. This ratio is used to determine the operating efficiency and profitability of a business. It indicates the percentage of sales that is available to cover the operating expenses and generate operating profit before considering the effects of financing and taxes. The formula for calculating the operating profit ratio is: Operating profit ratio = (Operating profit / Net sales) x 100
If the fixed cost is Rs.43,500 and the company, the contribution is Rs.500 per unit, how many unit sales would a company need to do to earn a profit of ...
As per AS-13, Long Term Investments are carried in the balance sheet at what value?
The purpose of preparing final accounts is to ascertain .
Which of the following is NOT an example of capital receipt?
How is the commission on reinsurance accepted typically accounted for by the reinsurer?
If the organisation has Budgeted sales > the Break-Even level of Sales, then Margin of Safety, would be:
Sensitivity Analysis is useful in decision making because __________.
Which of the following sectors does NOT apply operating costing technique?
Which section deals with TDS on cash withdrawals?
Expiration of cost of intangible assets is referred to as:
