Examlex
Which of the following decisions is supported by a financial information system (FIS) ?
Fixed Costs
Expenses that do not change with the level of production or sales activities, within a relevant period.
Variable Cost
Costs that vary in total in direct proportion to changes in the level of activity or volume of production.
Operating Leverage
The degree to which a firm or project can increase operating income by increasing revenue, reflecting the proportion of fixed costs to variable costs.
Financial Leverage
The use of borrowed funds to increase the potential return of an investment, which can also increase the risk of loss.
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