The Higher the Degree of Operating Leverage, the Greater Is

question 222

True/False

The higher the degree of operating leverage, the greater is the risk of forecasting error.

---

Definitions:

Finance Charge

The total cost of borrowing, including interest along with other charges like service fees or transaction fees.

Previous Balance

The amount of money in an account at the beginning of a new statement period, before any new transactions have been added.

Cycle Closing

The process of finalizing all transactions within a billing cycle for financial accounts.

Simple Interest

Interest calculated only on the principal amount of a loan or investment, rather than on previously earned interest.