Operating Leverage Measures the Effect of Fixed Financing Costs on the Relationship

question 161

Multiple Choice

Operating leverage measures the effect of fixed financing costs on the relationship between

• A) Sales and EBIT.
• B) Sales and EPS.
• C) EBIT and EPS.
• D) none of the above.

---

Definitions:

Positive Regard

The acceptance, respect, and appreciation that one person shows another, considered essential in humanistic psychology for healthy personal development.

Psychodynamic Theorists

Researchers and clinicians who explore how unconscious processes and childhood experiences affect personality and behavior.

Unconscious Determinants

Factors that influence behavior and decisions without the individual's conscious awareness, rooted in the unconscious mind.

Humanistic Theory

A psychological perspective focusing on the individual's capacity for self-growth and personal fulfillment.