Practicing Success

Target Exam

CUET

Subject

Accountancy

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%