CFA Mock Exam Morning Section Q14

CFA Level II
#1

I have a problem with the CFAI answers on the way operating income is calculated. Depreciation is left out of operating income calculations taking into account only cogs, sga expense and r&d expense. Can anyone explain why this is the case. Clearly in Corporate Finance, depreciation expense is included in calculating operating income. THanks

#2

Check the CFAI fixed income book. PG 208. Operating income = Sales - COG Manufactured (before depreciation) - SG&A - R&D / Sales

#3

http://www.analystforum.com/phorums/read.php?12,1156029 We were talking about this one earlier.

#4

Thanks Guys