If a Company Has Very Low Operating Leverage (I

question 49

Multiple Choice

If a company has very low operating leverage (i.e.,a low proportion of fixed costs in the cost structure) and no changes are expected in operations:

• A) percentage change income statement percentages can serve as the basis for projecting operating expenses.
• B) using common-size income statement percentages will overstate future projected operating expenses.
• C) using common-size income statement percentages will understate future projected operating expenses.
• D) using common-size income statement percentages can serve as a reasonable basis for projecting future operating expenses.

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Definitions:

Fear Of Failure

The fear that occurs when people are afraid of looking bad in front of others.

Success Feeling

The sense of achievement or fulfillment that comes from accomplishing goals or overcoming challenges.

Criticism Fear

The anxiety or apprehension of being judged, evaluated negatively, or receiving negative feedback.

Workplace Substance Policies

Regulations set by a company to manage or prohibit the use and abuse of drugs and alcohol within the workplace environment.