Which of the Following Statements Is Correct

question 79

Multiple Choice

Which of the following statements is correct?

• A)The degree of operating leverage (DOL) depends on a company's fixed costs, variable costs, and sales.The DOL formula assumes (1) that fixed costs are constant and (2) that variable costs are a constant proportion of sales.
• B)The degree of total leverage (DTL) is equal to the DOL plus the degree of financial leverage (DFL).
• C)Arithmetically, financial leverage and operating leverage offset one another so as to keep the degree of total leverage constant.
• D)The above statements are all true.
• E)The above statements are all false.

Estimate future value of regular investments over time with compound interest.

Calculate how much needs to be saved monthly to reach a financial goal within a specified timeframe.

Apply financial formulas to evaluate different borrowing and investment scenarios.

Analyze the impact of starting investments early versus delaying.

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Definitions:

Parts

Components or elements that make up a larger machine, device, or product.

Works

Refers to the output or creations produced by effort, skill, or labor, including artistic, engineering, and literary compositions.

IS Strategic Plan

An Information Systems Strategic Plan outlines an organization's technology-related objectives and the strategies to achieve them.

IS Operational Plan

Consists of a clear set of projects that the IS department and the functional area managers will execute in support of the IT strategic plan.