Higher Fixed Costs Are Associated With​

question 29

Multiple Choice

Higher fixed costs are associated with​
1) higher operating leverage
2) lower operating leverage
3) increased risk
4) lower risk

• A)​1 and 3
• B)​1 and 4
• C)​2 and 3
• D)​2 and 4

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Definitions:

Organizational Requirements

The necessary conditions, capabilities, resources, and systems an organization needs to achieve its objectives.

Resource Constraint

Limitations or restrictions on available resources, such as time, money, or manpower, which can affect project outcomes or business operations.

Scarcity

This refers to the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.

Full-Time Employment

A work status involving employees who typically work a minimum number of hours defined by their employer, often with benefits and salaries.