Which of the Following Best Describe the Term Degree of Operating

question 387

Multiple Choice

Which of the following best describe the term degree of operating leverage.

• A) The percentage change in operating cash flow relative to the percentage change in quantity sold.
• B) The sales level that results in a zero NPV.
• C) Costs that do not change when the quantity of output changes during a particular time period.
• D) The possibility that errors in projected cash flows lead to incorrect decisions.
• E) Opportunities that managers can exploit if certain things happen in the future.

---

Definitions:

Digitizer

A device or component that converts analog signals into digital form, often used in screens to detect touch inputs.

MIDI

Musical Instrument Digital Interface, a protocol designed for recording and playing back music on digital synthesizers.

Synthesized Music

Music created or modified by electronic devices or software through the manipulation of sound waves, enabling the production of new sounds and textures.

Scanner Glass

The flat surface on a scanner where documents or photos are placed for scanning, beneath which the scanning mechanism moves.