Earnings before interest and taxes (EBIT) is calculated:
A) sales - cost of goods sold - total operating cost.
B) gross margin - total operating cost .
C) sales - transportation costs - warehouse costs - inventory carrying costs.
D) none of these answers.

Question

Quizplus · Accepted Answer

EBIT is calculated as gross margin (sales minus cost of goods sold) minus total operating costs.

Earnings Before Interest and Taxes (EBIT) Is Calculated