Operating profit of a chemical plant is equal to___________________?
Correct answer: B. Profit before interest and tax i.e., net profit + interest + tax
- A. Profit after tax plus depreciation
- B. Profit before interest and tax i.e., net profit + interest + tax
- C. Net profit + tax
- D. Profit after tax
Explanation
Operating profit is profit before financing costs and income taxes, commonly called EBIT. Starting with net profit after tax, it is obtained by adding back interest and tax.
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