The Degree of Operating Leverage Is Computed by Dividing Sales

question 355

True/False

The degree of operating leverage is computed by dividing sales by the contribution margin.

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Definitions:

Theory E Change

An organizational change strategy that focuses on creating economic value often at the expense of organizational culture and employee well-being.

Shareholder Value

The concept emphasizing that the ultimate measure of a company's success is the extent to which it enriches its shareholders.

Top-Down Change

Organizational change initiatives that are initiated and guided by the top management or leadership of an organization.

Crisis Management

The process by which an organization deals with a disruptive and unexpected event that threatens to harm the organization or its stakeholders.