Asked by
Aryaman Kumar
on Nov 07, 2024Verified
The percentage change in firm (or project) operating cash flow relative to the percentage change in quantity sold is called (the) :
A) Cash flow marginal profit.
B) Degree of operating leverage.
C) Gross profit.
D) Net profit.
E) Financial break-even.
Operating Cash Flow
A measure of the cash generated or used by a company in its business operations, reflecting the entity's financial health.
Degree of Operating Leverage
A financial ratio that measures the sensitivity of a company's operating income to its sales volume, indicating how earnings are affected by sales fluctuations.
Quantity Sold
The total number of units of a product or service that have been sold during a specific period of time.
- Analyze the extent of operating leverage and its repercussions on the financial achievements of a company.
Verified Answer
MM
Learning Objectives
- Analyze the extent of operating leverage and its repercussions on the financial achievements of a company.