Operating Leverage Is

question 117

Multiple Choice

Operating leverage is

• A) the difference between sales and variable expense.
• B) the use of fixed costs to extract higher percentage changes in profits as sales activity changes.
• C) the portion of each sales dollar available to cover fixed costs and provide for profit.
• D) visually portrays the relationship between profits and units sold.
• E) none of these

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Definitions:

Control Group

In experimental research, a group of subjects that does not receive the experimental treatment and is used as a benchmark to measure how the other tested subjects do.

Experimental Group

In research, this group is exposed to the intervention or treatment being tested, in contrast to the control group.

Homework

Assignments given to students by their teachers to be completed outside of class aimed at reinforcing learning.

Double-blind Studies

Research designs in which neither the participants nor the experimenters know who is receiving a particular treatment, reducing biases.