The Degree of Operating Leverage Is Equal To

question 13

Multiple Choice

The degree of operating leverage is equal to:

• A)the percentage change in quantity divided by the percentage change in OCF.
• B)the percentage change in sales divided by the percentage change in OCF.
• C)1 + FC/OCF.
• D)1 + VC/OCF.
• E)1 - (FC + VC)/OCF.

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Definitions:

Additives

Substances added to something in small quantities to improve or preserve it, commonly used in context with food, fuel, or materials.

Matched Pairs

Matched pairs are a research design in which pairs of subjects are closely matched on key characteristics, with one subject in each pair receiving the treatment and the other serving as a control.

Population Variances

A measure of spread within a distribution or how much the members of the population differ from the population mean.

Pooled-variances T-test

A statistical method used to compare the means of two groups, assuming that the two populations have equal variances.