Final answer:
The degree of combined leverage is a metric that reflects the sensitivity of a company's operating income to changes in sales volume by considering both operating and financial leverage.
Step-by-step explanation:
The statement is false. The degree of combined leverage does not just consider the impact of a change in volume on the change in operating income. Instead, it measures the impact of a change in sales on the percentage change in earnings before interest and taxes (EBIT) or operating income, considering both operating leverage and financial leverage. Operating leverage is the degree to which a firm uses fixed operating costs, and financial leverage is the degree to which a firm uses fixed financial costs. By examining both, the degree of combined leverage gives a more comprehensive view of how sensitive a company's earnings are to changes in sales volume.