Which of the Following Measures the Sensitivity of Profit Changes

question 46

Multiple Choice

Which of the following measures the sensitivity of profit changes to changes in sales volume?

• A)contribution margin ratio
• B)variable cost ratio
• C)operating leverage
• D)degree of operating leverage

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Definitions:

Clark's Model

A psychological model proposed by David Clark, particularly known for explaining the maintenance of anxiety disorders through a cognitive framework.

Norepinephrine

A neurotransmitter and hormone involved in the body's fight or flight response, affecting mood, attention, and response to stress.

Anxiety-Related Disorder

A group of mental disorders characterized by significant feelings of anxiety and fear.

Cognitive Factors

Elements related to mental processes such as perception, memory, judgment, and reasoning that influence behavior and emotions.