The Degree of Operating Leverage (DOL) Can Be Measured by the Percent

question 150

Multiple Choice

The degree of operating leverage (DOL) can be measured by the percent change in operating income (EBIT) divided by percent change in:

• A) fixed costs
• B) variable costs
• C) unit sales
• D) total costs

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Definitions:

Service Mark

A trademark used to identify and distinguish the services (rather than products) of one provider from those of others.

Trade Name

The name under which a business operates and is known to the public, different from its legal name.

Weather Announcer

A person or system that communicates weather forecasts and conditions to the public.

Patent Law

The area of law that deals with the protection of inventions, granting inventors exclusive rights to use, make, and sell their inventions for a certain period.