Q374
An earning before interest, taxes, depreciation and amortization are calculated by
A.
subtracting operating cost from net sales
AnswerB.
subtracting net sales from operating costs
C.
adding operating cost and net sales
D.
adding interest and taxes
Answer: Option A
Solution
Answer: Option A
Solution:
An earning before interest, taxes, depreciation and amortization are calculated by subtracting operating cost from net sales. Earnings before interest and taxes is a measure of a firm's profit that includes all incomes and expenses except interest expenses and income tax expenses.