Cost Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText -- Access Card Package (15th Edition)
Cost Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText -- Access Card Package (15th Edition)
15th Edition
ISBN: 9780133781106
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Chapter 11, Problem 11.11Q
To determine

Operating Income:

Operating income is income which is earned by carrying out the regular business activity by the company. It is calculated by subtracting the operating expense, depreciation and amortization from the gross profit of the company.

To explain: If the operating cash flow is negative of a business then the business should be shut down or not.

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