A Decrease in Operating Leverage May Be Achieved by Increasing

question 31

True/False

A decrease in operating leverage may be achieved by increasing fixed costs relative to variable costs.

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Definitions:

ROI

Return on Investment, a measure used to evaluate the efficiency or profitability of an investment.

Percent

A way of expressing a number as a fraction of 100, symbolized by the percent sign (%).

Costing Approach

A method or strategy used to evaluate the expenses involved in producing a product or service, impacting pricing and budgeting decisions.

Direct Costs

Expenses that can be directly attributed to the production of specific goods or services, such as materials and labor.