If We Set Aside Individual Differences, Most People Perform Best

question 513

Multiple Choice

If we set aside individual differences, most people perform best on most daily tasks when their arousal level is

• A)high.
• B)moderate.
• C)low.
• D)at the zero stress level.

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Definitions:

Degree Of Operating Leverage

A measure, at a given level of sales, of how a percentage change in sales volume will affect profits. The degree of operating leverage is computed by dividing contribution margin by net operating income.

Variable Costs

Costs that change in proportion to the level of activity or volume of output produced.

Fixed Costs

Overheads that are unaffected by the quantity of output or sales, for example, tenancy costs, wages for staff, and indemnity expenses.

Contribution Format

A type of income statement presentation that separates fixed and variable costs, allowing for an easier assessment of how changes in volume affect profitability.