The Change in Operating Income Relative to a Change in Sales

question 145

Multiple Choice

The change in operating income relative to a change in sales is referred to as

• A)CVP.
• B)Operating leverage.
• C)Margin of Safety.
• D)Sales mix.

Apply knowledge of cash flow statement preparation to evaluate the financial health of a company.

Recognize the requirements and recommendations of financial standards (e.g., IASB) regarding cash flow statements.

Understand the importance and principles of responding to business communications effectively, including adjustments, claims, and inquiries.

Learn the strategies for writing effective business messages, including the application of direct and indirect strategies based on the situation.

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Definitions:

Minimax Strategy

In relating to others, we try to minimise the costs and maximise the rewards that accrue.

Maternal Deprivation

A theory that suggests the lack of an attachment figure, especially a mother, during childhood, can lead to long-term cognitive, social, and emotional difficulties.

Spitz

The name of a psychologist, René Spitz, known for his research on the effects of deprivation of emotional nurturance on infants.

Social Deficiencies

Lacks or shortcomings in one's ability to perform in social settings or maintain successful social relationships.