Operating Leverage Is the Responsiveness of a Firm's EBIT to Changes

question 156

True/False

Operating leverage is the responsiveness of a firm's EBIT to changes in sales revenues.

---

Definitions:

Tradespeople Workforce

A segment of the workforce specializing in skilled trades, such as carpentry, plumbing, and electrical work, often requiring specialized training and certifications.

Job Rotation Plan

A strategic approach to rotating employees through different roles or positions within an organization to diversify their skills and experience.

Strategic Level

The strategic level pertains to high-level planning and decision-making that guide an organization's overall goals, direction, and long-term sustainability.

On-the-job Training

A training approach where employees learn and acquire new skills in their actual work environment while performing their job tasks.