The Degree of Operating Leverage Can Be Multiplied by a Change

question 37

True/False

The degree of operating leverage can be multiplied by a change in sales to determine the change in profit.

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Definitions:

Salaries Payable

An account that records the amount owed to employees for work performed but not yet paid.

Payroll

The total amount paid to employees for services they provided during a certain period of time.

Accrued Revenues

Revenues earned in one accounting period but not received until a later period.

Adjusting Entry

A journal entry made in accounting records to update the balances of accounts at the end of an accounting period.