The Operating Cash Flow for a Project Should Exclude Which

question 67

Multiple Choice

The operating cash flow for a project should exclude which one of the following?

• A)taxes
• B)variable costs
• C)fixed costs
• D)interest expense
• E)depreciation tax shield

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Definitions:

Break-even Point

The point at which total cost and total revenue are equal, meaning there is no profit or loss.

Average Total Cost (ATC)

Total cost divided by output.

Average Variable Cost (AVC)

Variable cost divided by output.

Average Total Cost

The total cost of production divided by the quantity produced, indicating the average cost per unit of output.