Use the Following Statements to Answer This Question

question 50

Multiple Choice

Use the following statements to answer this question:
I.The source of volatility in operating income is caused by fixed costs.
II.Operating leverage does not necessarily increase with increases in the volatility of net income.

• A)I and II are correct.
• B)I and II are incorrect.
• C)I is correct and II is incorrect.
• D)I is incorrect and II is correct.

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Definitions:

Refuted

Successfully argued against a statement or theory, proving it to be wrong or false.

Well-Established Theories

Theories that have been widely accepted and validated through substantial evidence and scientific inquiry.

Studied Problem

An issue or challenge that has been the subject of detailed examination and research to understand its nature and find solutions.

Pseudoscience

A body of explanations or hypotheses that masquerades as science.