Sustainable OB

question 40

Multiple Choice

Sustainable OB:

• A)Seeks to manage customers to serve the financial interests of the organization.
• B)Always acts to seek financial well-being.
• C)Focuses on the well-being of a particular stakeholder.
• D)Strives to enhance multiple forms of well-being for multiple stakeholders.

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, demonstrating the proportion of fixed versus variable costs a company has.

Fixed Costs

Expenses that remain constant regardless of how much is produced or sold, including rent, salaries, and insurance costs.

Accounting Break-Even

The point where total sales equal total expenses, and the company makes no profit but also incurs no loss.

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up over a period.