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

question 95

Multiple Choice

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

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

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Definitions:

Special Journals

Accounting journals designed for recording a specific type of transaction in a more efficient manner, such as sales or purchases journals.