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.

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Definitions:

Depth

The distance from the nearest to the farthest objects in a scene, giving a three-dimensional perspective.

Cue

A signal or stimulus that guides or prompts an action, response, or decision.

Relative Displacement

A measure of the change in position of an object in relation to a reference point.

Nervous System

The network of nerve cells and fibers that transmits nerve impulses between parts of the body, enabling communication and response to the environment.