Degree of operating leverage (DOL) measures the sensitivity of OCF in response to changes of The higher the DOL, the_ the volatility of a firm's operating income. Select one: a. sales quantity; lower b. sales quantity; higher O c. fixed costs; lower O d. fixed costs; higher Oe. variable costs; higher
Degree of operating leverage (DOL) measures the sensitivity of OCF in response to changes of The higher the DOL, the_ the volatility of a firm's operating income. Select one: a. sales quantity; lower b. sales quantity; higher O c. fixed costs; lower O d. fixed costs; higher Oe. variable costs; higher
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 6MCQ: The use of fixed costs to extract higher percentage changes in profits as sales activity changes...
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![Degree of operating leverage (DOL) measures the sensitivity of OCF in response to changes of
The higher the DOL, the
the volatility of a firm's operating income.
Select one:
a. sales quantity; lower
O b. sales quantity; higher
O c.
fixed costs; lower
O d. fixed costs; higher
O e. variable costs; higher](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd76a149c-fbe9-4129-9ebd-018c62cda34d%2Fb983506d-9499-4316-a73b-0b2e709e5d59%2Fhacecql_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Degree of operating leverage (DOL) measures the sensitivity of OCF in response to changes of
The higher the DOL, the
the volatility of a firm's operating income.
Select one:
a. sales quantity; lower
O b. sales quantity; higher
O c.
fixed costs; lower
O d. fixed costs; higher
O e. variable costs; higher
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