Which of the Following Is a Key Determinant of Operating

question 116

Multiple Choice

Which of the following is a key determinant of operating leverage?

• A) Level of debt.
• B) Physical location of production facilities.
• C) Cost of debt.
• D) Technology.
• E) Capital structure.

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Definitions:

Economies Of Scale

Cost advantages reaped by companies when production becomes efficient, as the scale of operation increases leading to a reduction in average costs.

Eating Out

The activity of dining at a restaurant or an external establishment instead of preparing food at home.

Target Market Segments

Specific groups of potential customers identified by marketers as having shared characteristics and who are most likely to respond positively to certain marketing strategies.

Promotional Expenditures

The costs associated with marketing activities undertaken to increase brand awareness, product knowledge, and sales.