Given the following information:ParticularsAmount (Rs.)Revenue from Operations3,40,000Cost of Revenue from Operations1,20,000Selling expenses80,000Adm - Accountancy MCQ CUET Accountancy 2025 22 May Shift 1 2026 | ExamTest.live

easyMCQCUET Accountancy 2025 22 May Shift 12026Accountancy

1 mark

Given the following information:ParticularsAmount (Rs.)Revenue from Operations3,40,000Cost of Revenue from Operations1,20,000Selling expenses80,000Administrative Expenses40,000Calculate Operating ratio.

Solution & Step-by-step Explanation

Let's find the Operating Cost first: Operating Cost = Cost of Revenue from Operations + Operating Expenses Operating Expenses = Selling Expenses + Administrative Expenses = 80, 000 + 40, 000 = 1, 20, 000 Operating Cost = 1, 20, 000 + 1, 20, 000 = Rs. 2, 40, 000 Now, calculate the Operating Ratio: Operating Ratio = (\frac{Operating Cost}{Revenue from Operations}) \times 100 Operating Ratio = (\frac{2 , 40 , 000}{3 , 40 , 000}) \times 100 = \frac{24}{34} \times 100 \approx 70.588% \to 70.59%

Try it yourself before checking the explanation above.

Given the following information:ParticularsAmount (Rs.)Revenue from Operations3,40,000Cost of Revenue from Operations1,20,000Selling expenses80,000Administrative Expenses40,000Calculate Operating ratio.

50.97 times

50.79%

70.95 times

70.59%

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