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Which of the Following Decisions Is Supported by a Financial

question 94

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Which of the following decisions is supported by a financial information system (FIS) ?


Definitions:

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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