Earnings Before Interest and Taxes Is Calculated

question 33

Multiple Choice

Earnings before interest and taxes is calculated:

• A) sales - cost of goods sold - total operating cost.
• B) gross margin - cost of goods sold.
• C) sales - transportation costs - warehouse costs - inventory carrying costs.
• D) none of these answers.

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Definitions:

Writing

A type of documentation that shows contractual intent and satisfies the statute of frauds requirement.

States Require

A phrase indicating that individual U.S. states may have specific legal requirements or regulations that must be followed.

Merchantability

A warranty implied by law that goods sold are fit for the ordinary purpose for which such goods are used.

Webster v. Blue Ship Tea Room, Inc.

A legal case from Massachusetts in 1964 that centered around what constituted a "fish chowder," illustrating how courts interpret contractual obligations and representations in business.