The impact of a specific change in sales volume on net operating income is referred to as the
A) continuous system.
B) chronological processing.
C) debt capacity.
D) operating leverage.
E) intermittent system.

Question

Quizplus · Accepted Answer

The impact of a specific change in sales volume on net operating income is referred to as operating leverage. This measures the degree to which fixed costs are being used in a company's operations, and how that affects profitability.

The Impact of a Specific Change in Sales Volume on Net