Which of the Following Leverages Considers the Effect on Earnings

question 39

Multiple Choice

Which of the following leverages considers the effect on earnings per share (EPS) of the changing operating income (EBIT) ?

• A) Operating leverage
• B) Total leverage
• C) Combined leverage
• D) Contribution leverage
• E) Financial leverage

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Definitions:

Vehicle-Related Cost

Expenses associated with owning and operating a vehicle, including fuel, maintenance, insurance, and depreciation.

Operational Decisions

These are decisions aimed at managing the day-to-day operations of an organization to ensure efficient resource use and meeting customer demands.

Tailored Transportation

Customized transport solutions designed to meet specific needs of goods, optimizing efficiency and reducing costs.

Customer Needs

The requirements and desires of consumers that companies aim to meet with their products or services to achieve customer satisfaction.