All Other Things Equal, a Company Can Increase Its Operating

question 72

Multiple Choice

All other things equal, a company can increase its operating leverage by

• A)converting commission-based salespeople to salaried.
• B)decreasing the amount of depreciation charges.
• C)converting indirect costs to direct costs.
• D)converting manufacturing overhead to general and administrative expenses.

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Definitions:

Cyanobacteria

Photosynthetic microorganisms, also known as blue-green algae, that are important for oxygen production and are found in many aquatic environments.

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize foods from carbon dioxide and water.

Algae

Algae is a broad and diverse group of photosynthetic, usually aquatic, organisms that range from single-celled forms to large seaweeds.

Edicarian

Pertaining to the Ediacaran Period, a geological era from about 635 to 541 million years ago, notable for the first appearance of large, multicellular life forms.