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

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Definitions:

Fiscal Year

A one-year period that companies and governments use for financial reporting and budgeting, which may not coincide with the calendar year.

Accrued Interest

The interest that has been incurred but not yet paid on a loan or bond.

Fiscal Year

A 12-month period used for accounting and financial reporting purposes, which may or may not align with the calendar year.

Alternative Financing Plans

Various funding options available to a business beyond traditional bank loans, including leasing, factoring, and crowdfunding.