One Way to Compute the Expected Change in Operating Income

question 156

Multiple Choice

One way to compute the expected change in operating income due to a change in sales volume at a given level of sales is to

• A)compute the degree of operating leverage.
• B)perform high-low analysis.
• C)perform scattergraph analysis.
• D)perform horizontal analysis.

---

Definitions:

Experimental Items

Objects, tasks, or conditions used in experimental research to evaluate their effects on subjects.

Projective

A type of psychological test in which the test-taker projects their personality, fears, desires, and internal conflicts onto ambiguous stimuli.

Objective

Unbiased and unemotional; based on facts rather than feelings or opinions.

Dynamic

Pertains to the quality of being energetic or forceful, often characterized by constant change, activity, or progress.