Question: The difference between operating margin and total margin is which of the following? (Points : 5) - Operating margin does not indicate profitability from ongoing
The difference between operating margin and total margin is which of the following? (Points : 5)
- Operating margin does not indicate profitability from ongoing operations.
- Operating margin is operating income/total operating revenue. Total margin is gross profit/total revenue.
- One is a profitability ratio and the other is an efficiency ratio.
- Neither ratio is used by management or external users of financial statements.
- Both are operating indicators.
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