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nikklg [1K]
3 years ago
13

The degree of operating leverage at a specific level of sales helps the managers calculate the effect that potential changes in

sales will have on operating income. true or false
Business
1 answer:
Zarrin [17]3 years ago
5 0

Answer: TRUE

Explanation:

The DEGREE OF OPERATING LEVERAGE (DOL) is a ratio that measure just how much operating income will change if there is a change in sales.

The formula is the % change in EARNINGS BEFORE TAX/ % change in SALES.

This measure therefore assists analysts in estimating the impact of any change in sales in a company.

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The difference between the actual allocation base​ (actual quantity) and the amount of the allocation base that should have been
topjm [15]

Answer:

B. variable overhead efficiency variance

Explanation:

Answer option A, C, and D are incorrect. In variable overhead cost variance, we determine the difference between the actual and budgeted cost. In fixed overhead cost variance, we do not use allocation base cost. Again, in fixed overhead volume variance, we cannot use allocation base cost.

'B' is correct because the difference between the actual allocation base quantity and budgeted allocation base quantity multiplying with the standard rate states the variable overhead efficiency variance. The activity level is required to determine efficiency variance.

6 0
3 years ago
Which of the following is an example of an illiquid asset?
denis23 [38]

Answer:

The correct answer would be B, Money in a checking account.

Explanation:

Liquid assets are one in the category of assets that are ready to be converted into cash. Cash held by a company is the considered the liquid asset of the company. Or any assets which can be converted into cash without losing so much of its value is called a liquid asset. For example if a company holds gold bars as one of the assets, then this would be considered as the liquid asset because gold can easily be converted into cash in case of need. Account Receivables, Gold, deposits receipts, securities, bonds, etc are considered to be the liquid assets of the company after Cash.

5 0
3 years ago
Which situation is an example of a person making use of credit?
ivann1987 [24]

An example of a person making use of credit is a business owner takes out a loan to expand and redecorate her offices.

<h3>What is credit?</h3>

Credit is when a person makes use of money he or she does not have in her account. Usually, the person borrows the money from a lender. When a business owner takes out a loan, she is making use of credit.

To learn more about credit, please check: brainly.com/question/27547395

#SPJ1

5 0
2 years ago
Mr. Smith, the special education teacher, called Tim's parents to schedule a meeting to update information on Tim's progress on
topjm [15]

Answer:

b

Explanation:

ebbbbdbjdbvbksb jbejbkgbksn

7 0
1 year ago
A strategy is: Multiple Choice an action plan to maximize rewards in the current period in return for big risks. a procedure for
Strike441 [17]

Answer:

An action plan to achieve specific long term goals and objectives. based on the plans formed later resources are allocated. But initially long term goals and objectives are to be framed which is the main objective of strategic planning.

8 0
3 years ago
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