Which of the Following Statements Is Correct

question 79

Multiple Choice

Which of the following statements is correct?

• A)The degree of operating leverage (DOL) depends on a company's fixed costs, variable costs, and sales.The DOL formula assumes (1) that fixed costs are constant and (2) that variable costs are a constant proportion of sales.
• B)The degree of total leverage (DTL) is equal to the DOL plus the degree of financial leverage (DFL).
• C)Arithmetically, financial leverage and operating leverage offset one another so as to keep the degree of total leverage constant.
• D)The above statements are all true.
• E)The above statements are all false.

---

Definitions:

Gray Background

A neutral, mid-tone background color often used in software applications and websites to reduce eye strain and make other colors stand out.

Data Macro

A tool in some databases that allows for the automation of tasks, such as updating fields or creating records based on specific triggers.

Table Data

Information or input stored in the rows and columns of a table, typically within a database or spreadsheet.

Actions

In the context of software and applications, refers to the operations or commands that can be executed to perform specific tasks or functions.