What is another term meaning the degree of operating leverage?
A) The measure of the importance of fixed cost.
B) The operating profit elasticity.
C) The measure of business risk.
D) D.O.L.
E) All of the above.

Question

Quizplus · Accepted Answer

The degree of operating leverage (D.O.L.) is a measure that assesses the impact of fixed costs on the profitability of a company, making all the options correct. It reflects the importance of fixed costs (A), is related to operating profit elasticity (B), indicates the level of business risk associated with fixed costs (C), and is directly abbreviated as D.O.L. (D).

What Is Another Term Meaning the Degree of Operating Leverage