Which of the Following Statements Is Most Correct

question 63

Multiple Choice

Which of the following statements is most correct?

• A)higher levels of fixed costs result in lower levels of operating leverage.
• B)higher variable costs result in larger contribution margin.
• C)higher fixed costs result in larger break-even quantity.
• D)each of the above statements is false.

---

Definitions:

Performance Management

The systematic process by which an organization involves its employees in improving organizational effectiveness by focusing on objective setting, performance reviews, and the development of skills.

Focal-Point Review System

A performance evaluation method concentrating on critical job elements or specific objectives that are pivotal to an individual’s role within an organization.

Expectancy

A psychological concept referring to an individual's belief about how likely their effort will lead to a certain level of performance and desired outcomes.

Personal Goals

Individual objectives set by a person aiming for achievement in their personal or professional life.