Answer:
True
Step-by-step explanation:
In the income statements, the first item recognized is the sales/revenue then the cost of sales.
The net between these two element gives rise to the gross profit.
The operating expenses which includes the selling and distribution cost, administrative expenses is then subtracted to get the operating income(profit/loss) which is same as the earnings before interest and taxes.
As such, EBIT stands for earnings before interest and taxes and is same as operating income.