Operating Leverage Is Defined as The

question 14

Multiple Choice

Operating leverage is defined as the:

• A)ratio of operating cash flow to investing cash flow.
• B)ratio of fixed costs to variable costs.
• C)ratio of fixed assets to current assets.
• D)ratio of operating income to net income.

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Definitions:

Standard Deviation

A numerical indicator showing the spread or variation of values in a dataset, illustrating the degree to which the figures deviate from the average.

Mean

The mathematical average of a set of numbers, calculated by adding all the numbers together and dividing by the count of those numbers.

Correlation Coefficient

A numerical measure that indicates the extent to which two variables fluctuate together, showing the strength and direction of their relationship.

Statistical Measure

A quantity calculated from a set of data, which describes a characteristic of the data, such as its central tendency, dispersion, or shape.