Operating Leverage Is

question 117

Multiple Choice

Operating leverage is

• A) the difference between sales and variable expense.
• B) the use of fixed costs to extract higher percentage changes in profits as sales activity changes.
• C) the portion of each sales dollar available to cover fixed costs and provide for profit.
• D) visually portrays the relationship between profits and units sold.
• E) none of these

Identify techniques to mitigate issues and optimize the supply chain, including postponement and vendor-managed inventory.

Describe the components and management of supply chains.

Differentiate between various types of supply chain partnerships (e.g., keiretsu, joint ventures).

Evaluate the challenges of local optimization within supply chains.

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Definitions:

Standardized Scores

Scores that have been transformed to a common scale with a mean of zero and a standard deviation of one.

Symmetrical

Describes a shape or distribution where one half is a mirror image of the other half.

Infinite

Describing a value, quantity, or space that is limitless or without end.

Interquartile Range

Range of the middle 50% of the scores in a set of data.