Two or Three Words That Are Used So Frequently Together

question 50

Multiple Choice

Two or three words that are used so frequently together that they function like a one-word preposition.

• A) subordinating conjunction
• B) correlative conjunction
• C) compound preposition
• D) preposition

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Definitions:

Degree Of Operating Leverage

A financial ratio that measures the sensitivity of a company's operating income to its sales volume, indicating the impact of fixed costs on earnings.

Variable Expenses

Expenses that vary directly with the amount of activity or production volume.

Fixed Expenses

Expenses that do not change with the level of production or sales, remaining constant regardless of business activity levels.

Degree Of Operating Leverage

A ratio that measures a company's fixed costs as a proportion of its total costs, indicating how a change in sales will affect its operating income.