Reference no: EM132818015

Problem 1: Operating income will result if gross margin exceeds

a. cost of goods sold.

b. cost of goods sold plus operating expenses.

C. operating expenses.

d. purchases.

Problem 2: Which of the following terms does not mean the same as the others?

a. Bottom line

b. Gross profit

C. Operating profit

d. Profit from operations

Problem 3: Which of the following is not considered an operating expense?

a. Administrative expenses

b. Advertising expense

c. Cost of goods sold

d. Transportation out