A Scale with an Equal Number of Favorable and Unfavorable

question 79

Multiple Choice

A scale with an equal number of favorable and unfavorable categories is called a(n) ________.

• A) balanced scale
• B) unbalanced scale
• C) forced scale
• D) systematic scale
• E) equal scale

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Definitions:

Net Income

This is the total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.

Variable Expenses

Costs that change in proportion to the level of activity or production volume.

Fixed Expenses

Costs that do not fluctuate with the volume of production or sales, such as rent, salaries, and insurance.

Operating Leverage

A measure of how sensitive a company's operating income is to a change in its revenues, highlighting the impact of fixed costs on profitability.