The Degree of Operating Leverage Can Be Measured by ________

question 166

Multiple Choice

The degree of operating leverage can be measured by ________.

• A) dividing the contribution margin by operating income
• B) dividing the fixed costs by the sales price per unit
• C) multiplying the contribution margin to sales revenue
• D) dividing the fixed costs by contribution margin

---

Definitions:

LPT

Longest Processing Time; a rule used in job scheduling that sequences jobs in decreasing order of their processing times.

Due Date

The specific date by which something is supposed to be completed or paid.

Priority Rules

Guidelines used in manufacturing and project management to determine the order in which tasks or jobs should be executed based on their importance.

Process Time

The duration it takes to complete a specific task or operation from start to finish in a manufacturing or service process.