When Using the Price-To-Cash-Flow Method of Valuation EBITDA Is a Widely

question 22

True/False

When using the price-to-cash-flow method of valuation EBITDA is a widely accepted measure of cash flow.

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Definitions:

Opportunity Cost

The benefit, profit, or value of something that must be given up to acquire or achieve something else.

Make or Buy Decision

The process of deciding whether to produce a good or service in-house or to purchase it from an external supplier.

Fixed Manufacturing Overhead

Fixed manufacturing overhead consists of expenses that do not change with the level of production, such as rent, depreciation, and salaries of permanent staff.

Special Order

A one-time order that is not part of the company's usual ongoing operations, often requiring a deviation from standard pricing and production procedures.