Operating Leverage Increases as the Proportion of __________________ Increases

question 142

Multiple Choice

Operating leverage increases as the proportion of __________________ increases. ​

• A)Variable costs​
• B)Fixed costs​
• C)Assets​
• D)Equity​

Understand the components and calculations of return on investment (ROI) for operating assets.

Identify the role and structure of a balanced scorecard in performance measurement.

Differentiate between value-added and non-value-added activities within a business process.

Analyze the impact of financial and nonfinancial measures on future financial performance.

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Definitions:

Supply Chain

The entire process of making and selling commercial goods, including raw material gathering, manufacture, distribution, and sale.

Target Markets

Specific groups of potential customers towards which a business directs its marketing efforts and products.

Marketing Concept

A management orientation that focuses on identifying and meeting the needs and desires of consumers.

Transaction

An exchange or transfer of goods, services, or funds between two or more parties.