Selling, general, administrative, and research and development are examples of [...]
Answer
Operating expenses
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Open it Operating profit results from deducting operating expenses such as selling, general, administrative, and research and development expenses from gross profit.
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2. COMPONENTS AND FORMAT OF THE INCOME STATEMENT oods or services. Other expenses related to running the business are subtracted after gross profit.
Another important subtotal which may be shown on the income statement is operating profit (or, synonymously, operating income). <span>Operating profit results from deducting operating expenses such as selling, general, administrative, and research and development expenses from gross profit. Operating profit reflects a company’s profits on its usual business activities before deducting taxes, and for non-financial companies, before deducting interest expense. For financial
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