The degree of operating leverage is the ratio that measures the effects that variable costs have on changes in operating income when sales volume changes
Indicate whether the statement is true or false
FALSE .The degree of operating leverage is the ratio that measures the effects that fixed costs have on changes in operating income when sales volume changes.
You might also like to view...
What does the agency problem refer to?
A) The conflict that exists between the board of directors and the employees of the firm. B) The problem associated with financial managers and Internal Revenue agents. C) The conflict that exists between stockbrokers and investors. D) The problem that results from potential conflicts of interest between the manager of a business and the stockholders.
What is the hardest question which most people have a hard time answering when making their financial and personal goals?
a. How much money do we want to have in the future? b. What do we want to spend our money on? c. How do we create positive cash flow? d. How do we get the money we need?