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In: Accounting

Operating Income is an important metric and represents the profit that is left over when operating...

Operating Income is an important metric and represents the profit that is left over when operating expenses and cost of goods sold are deducted from revenue. It is also referred to as what?

  • A. Interest income

  • B. Earnings before Income Taxes, or EBT

  • C. Bottom line

  • D. Earnings before interest and taxes, or EBIT

Solutions

Expert Solution

Solution: Earnings before interest and taxes, or EBIT

Explanation: Earnings before interest and taxes (EBIT) is a metric computed by deducting all operating expenses (production as well as non-production expenses) from sales revenue. Thus it is amount calculated after the deduction of operational direct and indirect expenses from sales revenue

ekkarill92 answered 2 years ago
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