« Back to Glossary Index« Back to Glossary Index
Categories: Economics & Finance
Operating income is gross profit minus overhead expenses. Gross profit is equal to revenues minus cost of goods sold, which is the direct labor and raw materials costs of manufacturing goods or acquiring finished goods for resale. Overhead expenses include depreciation, marketing and general and administrative expenses.
(source: smallbusiness.chron.com)
Synonyms:
operating earnings,
