Which of the Following Best Describe the Term Operating Leverage

question 84

Multiple Choice

Which of the following best describe the term operating leverage.

• A) Investigation of what happens to NPV when only one variable is changed.
• B) The determination of what happens to NPV estimates when we ask what-if questions.
• C) The degree to which a firm or project relies on fixed costs.
• D) The change in costs that occurs when there is a small change in output.
• E) Taking into account the managerial options that are implicit in a project.

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Definitions:

Long-Term Growth

The process of increasing the economic, social, and cultural value of an entity over an extended period.

Company's Needs

The requirements or necessities that a company must fulfill to achieve its objectives and sustain its operations.

Valued Network Member

An individual or entity considered to be of significant importance or benefit within a network or community.

Résumé

A document summarizing a person's background, skills, and accomplishments, used primarily for job applications.