In the Sense Used in the Textbook, Which of the Following

question 18

Multiple Choice

In the sense used in the textbook, which of the following would be not classified as an innovation?

• A) the development of a unique wind-resistant glass for commercial and residential buildings
• B) implementing a method of marketing medical services to a new population
• C) the creation of a new database management system for an organization
• D) increasing the efficiency of a manufacturing plant by running two shifts of workers

---

Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income and the degree to which a company can increase operating income by increasing revenue.

Break-Even Point

The point at which total costs match total earnings from production or sales, leading to neither a profit nor a loss.

Maintenance Costs

The expenses incurred to keep an asset in working condition or restore it to proper operation.

Least-Squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of the squares of the differences between observed values and those predicted by a linear function.