1. Which of the below is correct about operating leverage?

Select one:

a.

Operating leverage is the magnification of fixed operating expenses on operating income.

b.

Both of the listed answers.

c.

Operating leverage is the magnification of fixed rate debt financing on net income.

d.

Neither of the listed answers.

2. COGS (Cost of Goods Sold) is expensed on the income statement as part of operating income.

True or False

3.

Which of the following words or phrases could be related to or describe the term loss?

Select one:

a.

Peripheral

b.

Unrealized

c.

Realized

d.

All of the listed answers.