CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

Operating profit is equal to ______.
A. net sales minus cost of goods sold
B. gross profit minus selling and administrative expenses
C. earnings before income taxes
Explanation: Operating profit is equal to gross profit minus selling and administrative expenses.

User Contributed Comments 5

User Comment
adansaenz isnt goss profit equal to revenues - cogs - S&A expenses?
enum No. Gross profit = revenue - COGS
xboxt Don't you have to minus depreciation and amortization apart from SG&A?
dservan1 i agree xboxt- what about depreciation ?
RahuLmal What about depreciation, amortization, research expenses ?
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