Degree of Operating Leverage Is

question 21

Multiple Choice

Degree of operating leverage is:

• A) The contribution margin divided by profit
• B) The ratio of total variable costs to total revenues
• C) The volume of revenue needed to breakeven
• D) Only important when the organization is very profitable

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Definitions:

Natural Selection

A process by which organisms better adapted to their environment tend to survive and produce more offspring, a concept fundamental to Charles Darwin's theory of evolution.

Observable Behavior

Actions or reactions of an individual that can be directly seen and measured.

Structuralism

An early school of psychology that sought to understand the structure of the mind by breaking down mental processes into their most basic components.

Nervous System

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