Which of the Following Is Not Subtracted in Arriving at Operating

question 46

Multiple Choice

Which of the following is not subtracted in arriving at operating income?

• A) Interest expense
• B) Cost of goods sold
• C) Depreciation
• D) Selling and administrative expense

---

Definitions:

Leadership Making

An approach that emphasizes the development of high-quality leader-member exchanges, aiming to transform average LMX relationships into partnerships characterized by mutual respect, trust, and obligation.

Stranger Phase

The initial phase in Leader-Member Exchange (LMX) theory where the leader and the subordinate start their relationship with formal interactions based on organizational roles.

Leadership Making

The process of developing leadership qualities within an individual or group, often through mentoring and experience.

Leader-Member Exchange Theory

A theory suggesting that leaders develop unique one-to-one relationships with each of the people reporting to them.