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.

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Definitions:

Component Measuring

The process of precisely determining the dimensions, capacity, or amount of various components or parts in manufacturing or engineering.

Posi-Drive Screw

A type of screw designed with a unique drive system that reduces the risk of cam-out and increases the efficiency of torque transmission.

Phillips Screw

A type of screw with a cross-shaped slot on its head, designed by Henry F. Phillips.

Higher Torque

Refers to a greater twisting force typically achieved by an engine or motor, resulting in increased ability to perform work, especially in moving heavier loads.