Business
Operating income is an accounting figure that measures the amount of profit realized from a business's operations after deducting operating expenses such as wages, depreciation, and cost of goods sold. Operating income also called income from operations takes a company's gross income, which is equivalent to total revenue minus COGS, and subtracts all operating expenses. A business's operating expenses are costs incurred from normal operating activities and include items such as office supplies and utilities. Operating income is a measurement that shows how much of a company's revenue will eventually become profits considering its business operations. It's a measurement of what money a company makes only looking at the strictly operational aspect of its company. Operating income factors in two major types of expenses: cost of goods sold and operating expenses.This show is part of the Spreaker Prime Network, if you are interested in advertising on this podcast, contact us at https://www.spreaker.com/show/4432332/advertisement