Why Is the Level of Operating Leverage Important

question 4

Multiple Choice

Why is the level of operating leverage important?

• A)It affects the change in profit when sales change.
• B)It predicts how much cost will be incurred at various levels of activity.
• C)It is calculated using regression analysis which uses all available data points.
• D)None of these answer choices are correct..

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Definitions:

Moral Reasoning

The process by which an individual thinks through ethical problems and arrives at principles of right and wrong.

Erik Erikson

Known for formulating a theory regarding the psychosocial growth of individuals, he is a distinguished psychoanalyst and developmental psychologist.

Lawrence Kohlberg

An American psychologist best known for his theory of stages of moral development, which explains the development of moral reasoning.

Geometry Class

A course of study that involves the exploration and understanding of shapes, sizes, properties of space, and the relationships between different geometrical figures.