The Concept of Operating Leverage Refers to Which of the Following

question 39

Multiple Choice

The concept of operating leverage refers to which of the following?

• A)Operating income changes proportionately more than revenues for any given change in activity level.
• B)Operating income changes proportionately less than revenues for any given change in activity level.
• C)Operating income changes proportionately more than income for any given change in activity level.
• D)Operating income changes proportionately less than income for any given change in activity level.

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Definitions:

Bailed Property

Property given to someone (bailee) for safekeeping under a bailment agreement, where the physical possession but not the ownership of the property is transferred.

Bailee

A person or entity temporarily in possession of property entrusted to them by the owner under a bailment agreement.

Car Wash

A facility or service where vehicles are cleaned and detailed, either manually or through an automated process.

Liability

The state of being legally responsible for something, especially in terms of debts or legal obligations.