All Else the Same, If You Decrease Fixed Costs, Operating

question 348

True/False

All else the same, if you decrease fixed costs, operating leverage will also decline.

---

Definitions:

Effective Organizational Climate

The overall atmosphere within a company, influencing employees' behavior and work motivation.

Theory X

A management concept that assumes employees are inherently lazy and unambitious, requiring strict supervision and control to be productive.

Hygienes

The qualities in the workplace that are outside the job itself (examples: company benefits, policies, job security). When these factors are weak or missing, motivation will fall; however, when they are high, motivation will not be strong or long term.

Herzberg's Two-factor Theory

A motivational theory proposing that job satisfaction and dissatisfaction arise from two different sets of factors - hygiene factors and motivators.