If the Proportion of Fixed Costs Increases

question 81

Multiple Choice

If the proportion of fixed costs increases:

• A) DOL falls.
• B) DOL rises.
• C) the NPVbreakeven level of sales declines.
• D) the NPV of the cash flows declines.

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Definitions:

Fictitious Invoices

A method of fraud involving invoices for goods or services that were never received or provided.