Whenever the Percentage Change in EBIT Resulting from a Given

question 40

True/False

Whenever the percentage change in EBIT resulting from a given percentage change in sales is greater than the percentage change in sales, operating leverage exists.

---

Definitions:

Moral Sense

An innate or developed capacity within humans to judge actions as right or wrong based on societal norms and personal ethics.

Innate Understanding

Knowledge or understanding that is believed to be inborn or present naturally rather than acquired through experience.

Right and Wrong

Concepts that denote moral judgments about actions and behaviors, often guided by societal norms and personal ethics.

Androgens

Hormones that play a key role in male traits and reproductive activity; present in both males and females.