The Degree of Operating Leverage (DOL) Shows the Relationship Between

question 70

True/False

The degree of operating leverage (DOL) shows the relationship between sales and pretax profits.

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Definitions:

Instrument

A legal document formally expressing a certain action, decision, or obligation.

Drawer

The party in a transaction who writes and signs a check or draft instructing a drawee, such as a bank, to pay a specified sum of money to the payee.

Drawee

The person or entity upon whom a check, draft, or bill of exchange is drawn and who is expected to pay it.

Payee

The person or entity to whom a payment is to be made or who receives the payment.