The Extent to Which an Organization Uses Fixed Costs in Its

question 47

Multiple Choice

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

• A)financial leverage.
• B)operating leverage.
• C)fixed cost leverage.
• D)contribution leverage.
• E)efficiency leveragE.

---

Definitions:

Transitivity Relationship

A principle in mathematics and logic where if relation holds between a and b, and between b and c, it also holds between a and c.

Valid Inference

A logical conclusion drawn from premises known or assumed to be true.

Ominous Results

Findings or outcomes that are perceived as threatening or indicative of future negative events.

Reason with Certainty

The process of drawing conclusions or making determinations based on clear, indisputable evidence or principles.