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Operating Activities:

A section on the cash flow statement that displays all of the changes in cash flow caused by the normal day-to-day operation of the business. Increases or decreases in accounts receivable would be an example of changes from an operating activity.

Operating Earnings:

Contribution profit margin minus fixed expenses.

Operating Expenses:

See Fixed Operating Expenses.

Operating Margin:

The percentage difference between gross revenue (R) and operating costs (C), or .

Operating Ratios:

Measures of the relationships and balance between revenue and expenses and their corresponding assets and liabilities.

Organizational Chain:

The management structure of an organization expressed in broad layers or terms.

Overhead:

Costs that are not directly attributable to a specific product.

Owner ‚ s Equity:

Total assets minus total liabilities.

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