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Which of the Following Is Most Likely to Affect Consistency

question 5

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Which of the following is most likely to affect consistency of measures?


Definitions:

Variable Expenses

Costs that vary in direct proportion to changes in an organization's activity level or volume of output.

Operating Leverage

A measure of how sensitive net operating income is to a given percentage change in dollar sales.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue.

Contribution Margin

The difference between sales revenue and variable costs, indicating the contribution of sales to fixed costs and profits.

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