Which One of the Following Is the Relationship Between the Percentage

question 89

Multiple Choice

Which one of the following is the relationship between the percentage change in operating cash flow and the percentage change in quantity sold?

• A)degree of sensitivity
• B)degree of operating leverage
• C)accounting break-even
• D)cash break-even
• E)contribution margin

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Definitions:

Mixed Cost

An expense that contains both variable and fixed cost components, changing in total with the level of activity but also containing a constant element.

Straight-Line Depreciation

A method used in accounting to allocate the cost of a tangible asset over its useful life evenly.

Electricity Costs

The financial charges for the consumption of electrical energy by a business, forming part of its operating expenses.

Factory Supervisor

A managerial position responsible for overseeing the daily operations of a manufacturing facility, ensuring production targets are met efficiently.