Which of the Following Statements Is Not True

question 56

Multiple Choice

Which of the following statements is not true?

• A) Operating leverage refers to the extent to which a company's net income reacts to a given change in sales.
• B) Companies that have higher fixed costs relative to variable costs have higher operating leverage.
• C) When a company's sales revenue is increasing, high operating leverage is good because it means that profits will increase rapidly.
• D) When a company's sales revenue is decreasing, high operating leverage is good because it means that profits will decrease at a slower pace than revenues decrease.

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Definitions:

Medications

Substances used to diagnose, treat, cure, or prevent diseases and relieve symptoms.

Dried Apricots

Apricots that have been dehydrated to remove moisture, concentrating their flavors and extending their shelf life.

Chronic Overeating

The habit of consuming food in quantities significantly higher than the body's energy requirement, often leading to health issues like obesity and heart disease.

Body Temperature

The measure of the body's ability to generate and get rid of heat, critical for maintaining metabolic/homeostatic balance.