The Extent to Which an Organization Uses Fixed Costs in Its

question 103

True/False

The extent to which an organization uses fixed costs in its cost structure is measured by financial leverage.

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Definitions:

Authorized

Officially given permission or power to do something.

Actual Authority

The express and implied powers granted by a principal to an agent to act on the principal’s behalf.

Apparent Authority

The appearance or assumption of authority based on the actions or words of the principal, which a third party reasonably believes the agent has.

Implied Authority

Authority of an agent that is not expressly granted but rather implied by the actions, situation, or responsibilities given to the agent.