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)operating leverage.
D)debt capacity.
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. It measures how much operating income can change based on a change in sales. This indicates how sensitive a company's profits are to changes in sales volume.

The Impact of a Specific Change in Sales Volume on Net