Depreciation and Amortization Are Treated Like Fixed Costs

question 88

Multiple Choice

Depreciation and amortization are treated like fixed costs:

• A) in the calculation of the degree of pretax cash flow operating leverage.
• B) in the calculation of the degree of accounting operating leverage.
• C) for cash flow purposes.
• D) for computing dividend.

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Definitions:

Union Membership

The state of being a member of a labor union, which is an organization that represents the collective interests of workers in negotiations with employers.

Manufacturing

The process of converting raw materials or components into finished goods through the use of tools, human labor, machinery, and chemical processing.

Right-to-Work Laws

Under the Taft-Hartley Act, states are permitted to pass these laws, which prohibit the union shop. (Union membership cannot be made a condition of securing employment.)

Landrum-Griffin

Refers to the Labor-Management Reporting and Disclosure Act of 1959, which aims to protect union members' rights and improve union governance.