What term describes the operating revenue that remains after the cost of merchandise sold has been deducted?

The term that describes the operating revenue remaining after the cost of merchandise sold has been deducted is known as gross profit. Gross profit measures how efficiently a company uses its resources to produce and sell its products. It is calculated by subtracting the cost of goods sold (COGS) from total revenue. This figure provides insight into the core profitability of the company’s main business activities, without accounting for operating expenses, taxes, or other income.

Total revenue refers to all income generated from the sale of goods or services before any expenses are deducted, which does not answer the question of what remains after COGS. Net income takes into account all expenses, including operating costs and taxes, and represents the profit after all deductions, thus providing a broader view of a company's profitability rather than focusing solely on gross profit from sales. Operating profit further includes operating expenses and other costs, focusing on the profitability from core operations, but it is calculated after gross profit, not before.

Therefore, gross profit is the correct answer as it directly reflects the operating revenue left after deducting the cost of merchandise sold.