Which of the following measures would not help managers manage their degree of operating leverage?

Question

Quizplus · Accepted Answer

Converting some indirect material to direct material would not help managers manage their degree of operating leverage. The degree of operating leverage is a measure of how sensitive a company's earnings are to changes in its sales. It can be controlled by changing the mix of fixed and variable costs. Converting some indirect material to direct material may change the nature of the costs, but it would not affect the mix of fixed and variable costs.

Which of the Following Measures Would Not Help Managers Manage