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:

ADR Techniques

Alternative Dispute Resolution methods, including mediation, arbitration, and negotiation, used to resolve conflicts outside the traditional court system.

Conciliation

A process in which a neutral third party assists disputing parties to reach a mutually agreeable solution.

Arbitration

A process where a dispute is resolved by an impartial third party whose decision the involved parties agree to accept.

Precedent

A tool used by judges to make rulings on cases on the basis of key similarities to previous cases.