Which of the Following Is the Most Precise Definition of the Operating

question 80

Multiple Choice

Which of the following is the most precise definition of the operating leverage factor? The operating leverage factor measures

• A) the proportion of fixed costs in a firm's cost structure.
• B) the proportion of variable costs in a firm's cost structure.
• C) the effect that an increase (decrease) in sales volume will have on profit.
• D) the proportion of fixed costs in a firm's cost structure AND the proportion of variable costs in a firm's cost structure.

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Definitions:

Mailing Address

The address to which mail is sent, including the recipient's name, street address, city, state, and postal code.

Letterhead

The top section of a letter or stationery, usually including a name, address, and a logo or corporate design, identifying the person or company.

Postal Code

A postal code is a series of letters, digits, or both, assigned to a postal address for the purpose of sorting mail.

Hyperlink

A reference or link in a document that users can click on to navigate to another location or document.