The Change in Operating Income Relative to a Change in Sales

question 70

Multiple Choice

The change in operating income relative to a change in sales is referred to as

• A)CVP.
• B)operating leverage.
• C)margin of safety.
• D)sales mix.

---

Definitions:

Advertising Tool

A method or device used to promote products or services to target audiences effectively.

Governments Exempt

A status that exempts government entities from certain laws, taxes, or requirements that apply to private parties.

Due Diligence Defense

A defense in which the defendant argues that he or she applied the appropriate degree of attention, care, and research expected of a party in a given situation and had reasonable grounds to believe that certain facts and statements were accurate and had no omission of material facts.

Registration Statement

A document submitted to regulatory authorities detailing a company's financials and other significant information, used primarily during the issuance of new stock.