With Respect to Business Customs, Customs in Which the Outsider

question 81

Multiple Choice

With respect to business customs, customs in which the outsider must not participate are called:

• A) imperatives.
• B) electives.
• C) exclusives.
• D) non-traditional.
• E) standardized.

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, determined by the proportion of fixed versus variable costs a company has.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much contributes towards covering fixed costs and generating profit.

Income from Operations

The earnings generated from a company's core business operations before subtracting interest and taxes.

Profit-Volume Chart

A graphical representation that shows the relationship between a company's profits and its level of output or sales volume.