An earning before interest, taxes, depreciation and amortization are calculated by
A. subtracting operating cost from net sales
B. subtracting net sales from operating costs
C. adding operating cost and net sales
D. adding interest and taxes
Answer: Option A
Solution (By Examveda Team)
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.
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