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:

Reflex Arc

The neurological path that mediates a reflex action, involving at a minimum, a sensory neuron, a motor neuron, and usually an interneuron.

Integration Center

A region in the nervous system where information is processed and interpreted, often resulting in the initiation of a specific response.

Dorsal Root Ganglia

A cluster of nerve cell bodies (neurons) in the dorsal root of a spinal nerve.

Sensory Neurons

Nerve cells that transmit sensory information (sight, sound, feeling, etc.) towards the central nervous system.