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Role and Scope of PM

Quick practice

Question 1 of 5

Assertion (A): The impact of change in sales on operating income is measured by the degree of operating leverage.

Reason (R): The degree of operating leverage is higher when the fixed cost is high.

A

(A) is incorrect, but (R) is correct

B

(A) and (R) are correct and (R) is the correct explanation of (A)

C

(A) is correct, but (R) is incorrect

D

(A) and (R) are correct but (R) is not the correct explanation of (A)

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