Operating Leverage Refers to the Extent to Which an Organization's

question 43

Multiple Choice

Operating leverage refers to the extent to which an organization's cost structure is made up of:

• A)differential costs.
• B)opportunity costs.
• C)fixed costs.
• D)relevant costs.
• E)product costs.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold, determined by the supply and demand dynamics in the open market.

Dividend

A share of a company's profits distributed to its shareholders, usually on a regular basis, as determined by the board of directors.

Dividend Yield

Dividend yield is a financial ratio that indicates how much a company pays out in dividends each year relative to its stock price.

Dividends per Share

The amount of dividend a company pays out to its shareholders for each share owned.