12 Views

Question : _____________ratio establishes a relationship between gross profit and Revenue from Operations, i.e. Net Sales.

Option 1: Net profit ratio

Option 2: Operating profit ratio

Option 3: Gross profit ratio

Option 4: None of the above


Team Careers360 20th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: Gross profit ratio


Solution : Answer = Gross profit ratio.

The gross profit Ratio Establishes the relationship between gross profit and revenue from the operation. The gross profit ratio evaluates the proportion of gross profit generated from revenue. It measures the efficiency of production and sales processes, indicating the percentage of revenue retained after deducting the cost of goods sold.
Hence, the correct option is 3.

Related Questions

Amity University Noida MBA Ad...
Apply
Amongst top 3% universities globally (QS Rankings)
Graphic Era (Deemed to be Uni...
Apply
NAAC A+ Grade | Among top 100 universities of India (NIRF 2024) | 40 crore+ scholarships distributed
UPES MBA Admissions 2025
Apply
Ranked #41 amongst institutions in Management by NIRF | 100% Placement | Last Date to Apply: 15th July
Amity University, Noida BBA A...
Apply
Ranked amongst top 3% universities globally (QS Rankings)
Galgotias University | Admiss...
Apply
25+ years of legacy | NAAC A+ Grade | 800+ Recruiters | 1.5 CR-Highest Package
Shoolini University Admission...
Apply
NAAC A+ Grade | Ranked No.1 Private University in India (QS World University Rankings 2025)
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books