Operating Leverage Is Highest in Companies That Have

question 61

Multiple Choice

Operating leverage is highest in companies that have:

• A) a service rather than a manufacturing emphasis
• B) virtually no fixed costs
• C) equal variable costs and fixed costs
• D) a high proportion of variable costs relative to their fixed costs
• E) a high proportion of fixed costs relative to their variable costs

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Definitions:

Presence

Presence refers to the state of being physically or perceptually in a place or moment, often implying attention, involvement, or participation in the current environment or activity.

Absence

The state of being away or not present, often used in the context of missing work or responsibilities.

Fight-or-Flight

A physiological response to perceived harmful events, attacks, or threats to survival, leading to an increase in heart rate, energy levels, and alertness.

Learned Reaction

A behavior or response developed as a result of experience.