Site navigation

Match the items of List - I with the items of List - II and find out the correct matching. List - I…

Contribution / EBIT measures operating leverage, EBIT / EBT measures financial leverage, and Contribution / EBT, the product of the two, measures combined or super leverage.…

Choose your answer

Match the items of List - I with the items of List - II and find out the correct matching.

List - I (Formulae)List - II (Type of leverages)
(a) Contribution / EBIT(i) Financial leverage
(b) EBIT / Earnings before Tax (EBT)(ii) Super – leverage
(c) Contribution / EBT(iii) Operating leverage
Select one answer
Answer and explanation

Correct answer A

Contribution / EBIT measures operating leverage, EBIT / EBT measures financial leverage, and Contribution / EBT, the product of the two, measures combined or super leverage. Hence (a)-(iii), (b)-(i), (c)-(ii).

Practice for these exams

  • UGC NET Commerce

Related question papers

Related exam syllabi

Related questions in this topic