The degree of operating leverage
a. does not provide a reliable measure of a company's earnings volatility.
b. cannot be used to compare companies.
c. is computed by dividing total contribution margin by net income.
d. measures how much of each sales dollar is available to cover fixed expenses.
Answer: c. is computed by dividing total contribution margin by net income.
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The _________________ - the systematic reductions in production costs that have been observed to occur over the life of a product. A product's production costs decline by some quantity about each time cumulative output doubles.
Fill in the blank(s) with the appropriate word(s).
Which of the following training techniques provides the learners with a few details about the situation and then requires the learners to ask questions to obtain the other necessary information in order to solve the problem?
A. Incident method B. Business game C In-basket D. Role-playing