The Degree of Operating Leverage Is Measured by Relating the Percentage

question 59

Multiple Choice

The degree of operating leverage is measured by relating the percentage change in EBIT to the percentage change in:

• A) sales.
• B) earnings per share.
• C) debt ratio.
• D) share price.

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Definitions:

Responsibility

An obligation to carry out duties or tasks effectively and being accountable for the outcomes.

Outcomes

are the results or consequences of actions taken by individuals or organizations.

Perceptions

The process of becoming aware of something via the senses; a way of understanding or interpreting something.

Performance Appraisal

The process of evaluating and documenting an employee's performance, to provide feedback, determine developmental needs, and guide decision-making about promotions, bonuses, or terminations.