Which of the Following Mathematical Expressions Is Used to Calculate

question 70

Multiple Choice

Which of the following mathematical expressions is used to calculate the degree of accounting operating leverage?

• A) 1 + (FC / EBITDA)
• B) 1 + (FC / EBIT)
• C) 1 + [(FC + Depreciation and Amortization) / EBITDA]
• D) 1 + [(FC + Depreciation and Amortization) / EBIT]

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Definitions:

Macronutrient

Essential nutrients required in large amounts by living organisms, including carbohydrates, proteins, and fats, which provide energy and structural materials.

Nucleic Acids

Large biomolecules essential for all known forms of life, including DNA and RNA, which carry genetic information.

Phospholipids

A class of lipids that are a major component of all cell membranes, consisting of two fatty acids, a glycerol unit, and a phosphate group.

ATP

Adenosine triphosphate, a universal energy currency of cells, used to fuel various cellular processes.