The Extent to Which an Organization Uses Fixed Costs in Its

question 6

Multiple Choice

The extent to which an organization uses fixed costs in its cost structure is measured by:

• A) financial leverage.
• B) operating leverage.
• C) fixed cost leverage.
• D) contribution leverage.
• E) efficiency leverage.

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Definitions:

Flash Drive

A portable storage device using flash memory to store data, easily used with computers and other devices via a USB port.

Internet Connection

A means of connecting a computer or other device to the World Wide Web, allowing access to websites and online services.

Computer

An electronic device capable of executing instructions to process data, perform calculations, and manage information.

Hard Drive

A data storage device used for storing and retrieving digital information using one or more rigid, rapidly rotating disks (platters) coated with magnetic material.