Assertion (A): Inspite of a higher operating ratio the profitability tends to be lower.
Reason (R): Operating ratio shows a relationship between net operating profit and net sales.
Now, select the correct answer:

Assertion (A): Inspite of a higher operating ratio the profitability tends to be lower.
Reason (R): Operating ratio shows a relationship between net operating profit and net sales.
Now, select the correct answer: Correct Answer Both (A) and (R) are true and (R) is the correct explanation of (A)

Related Questions

Given below are two statements, one labelled as Assertion (A) and the other as Reason (R)
Assertion (A): Gross profit ratio is calculated on the basis of net sales.
Reason (R): Gross profit ratio measure overall profitability of a concern.
Choose the correct answer: