Depreciation and amortisation 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) none of the above.

Question

Quizplus · Accepted Answer

Depreciation and amortization are non-cash expenses and are treated like fixed costs in the calculation of the degree of pretax cash flow operating leverage because they do not vary with the level of production or sales.

Depreciation and Amortisation Are Treated Like Fixed Costs