?

Managerial Accounting

Free Version

Upgrade subject to access all content

Easy

What Does Operating Leverage Measure or Indicate?

MGRACT-C91SSI

What does the Operating Leverage ratio measure or indicate?

A

How sensitive profits are to a change in fixed costs.

B

How much profits will change in response to a change in sales volume.

C

How much profits will change in response to a change in sales price.

D

What proportion of the total costs are likely to go away in the future.