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A major disadvantage of the payback period method is that it
Net Income
The total profit of a company after all expenses and taxes have been deducted from revenue.
Operating Leverage
The degree to which a company can increase its profits by increasing sales, reflecting how fixed costs are leveraged against sales volume.
Fixed Expenses
Costs that do not vary with the level of production or sales over a short period, such as rent or salaries.
Cost Structure
The relative proportion of fixed, variable, and mixed costs in an organization.
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