Operating Leverage Increases with Fixed Cost

question 79

True/False

Operating leverage increases with fixed cost.

---

Definitions:

Petty Cash Fund

A small amount of cash kept on hand in a business for minor expenses.

Delivery Expenses

Costs incurred by a company in distributing its products to customers, including shipping fees and handling charges.

Merchandise Inventory

Goods that a company holds for the purpose of selling them to customers, reported as a current asset on the balance sheet.

Bank Service Charge

Fees charged by a bank for the maintenance of an account and for providing banking services.