Give typing answer with explanation and conclusion 5. Which of the following statements is correct? A-- All the answers are correct. B-- A more direct method of calculating the DOL is to use the following equation is DOL = (Sales - Variable Costs)/EBIT. C-- Because the amount of debt is determined by managerial choice, the business risk that a firm faces is also determined by management. D-- Fixed costs are those costs that are expected to change at the same rate as the firm’s sales. E-- If a firm’s operating costs are all variable, then any variation in sales will be less than the variatio
Give typing answer with explanation and conclusion 5. Which of the following statements is correct? A-- All the answers are correct. B-- A more direct method of calculating the DOL is to use the following equation is DOL = (Sales - Variable Costs)/EBIT. C-- Because the amount of debt is determined by managerial choice, the business risk that a firm faces is also determined by management. D-- Fixed costs are those costs that are expected to change at the same rate as the firm’s sales. E-- If a firm’s operating costs are all variable, then any variation in sales will be less than the variatio
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 15MC: The high-low method and least-squares regression are used by managers to _____________________. A....
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Give typing answer with explanation and conclusion
5. Which of the following statements is correct?
A-- All the answers are correct.
B-- A more direct method of calculating the DOL is to use the following equation is DOL = (Sales - Variable Costs)/EBIT.
C-- Because the amount of debt is determined by managerial choice, the business risk that a firm faces is also determined by management.
D-- Fixed costs are those costs that are expected to change at the same rate as the firm’s sales.
E-- If a firm’s operating costs are all variable, then any variation in sales will be less than the variation in EBIT.
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