The Degree of Operating Leverage

question 109

Multiple Choice

The degree of operating leverage

• A) does not provide a reliable measure of a company's earnings volatility.
• B) cannot be used to compare companies.
• C) is computed by dividing total contribution margin by net income.
• D) measures how much of each sales dollar is available to cover fixed expenses.

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Definitions:

Subconscious Goal Motivation

involves goals that influence one's behavior below the level of conscious awareness.

Stajkovic, Locke, and Blair

Refers to researchers who have contributed to the fields of psychology and organizational behavior, particularly in the areas of motivation and leadership.

Felt Negative Inequity

Occurs when an individual perceives that they have received less than they have contributed or less than others, leading to feelings of unfairness.

Proportion to Work

Refers to the relative amount of effort or resources allocated towards work activities compared to other areas.