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In General, When Fixed Operating Costs Become a Larger Percentage

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In general, when fixed operating costs become a larger percentage of a company's operating costs, the operating leverage effect


Definitions:

Change Blindness

A phenomenon where a person does not notice significant changes in the visual details of a scene upon introduction of new visual stimuli.

Consciousness

The state of being aware of and able to think about one's self, surroundings, and thoughts; the essence of sentience.

Dual Processing

Refers to the principle that our mind operates on two levels: a conscious, deliberate mode, and an unconscious, automatic mode.

Parallel Processing

In cognitive science and computer science, it refers to the ability of the brain or a computer to process multiple tasks simultaneously.

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