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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