Cost of Revenue from Operations is Rs 3,

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Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Accounting Ratios

Question:

Cost of Revenue from Operations is Rs 3,00,000 Revenue from Operations is 5,00,000. Operating Expenses are Rs 1,00,000. Operating Ratio would be:

Options:

20%

60%

80%

90%

Correct Answer:

80%

Explanation:

Operating Ratio = Operating Cost/ Revenue from Operation * 100
= (3,00,000+1,00,000)*100/ 5,00,000
= 80%