The Greater the Ratio of Variable Costs to Sales,the

question 18

Multiple Choice

The greater the ratio of variable costs to sales,the:

• A) more each additional sale contributes to the coverage of fixed costs.
• B) lower the level of profitability.
• C) more units that must be sold to cover fixed charges.
• D) lower the benefit of conducting a sensitivity analysis.

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Definitions:

Organizational Citizenship Behavior

Voluntary, extra-role activities performed by employees that contribute to the organization but are not formally rewarded.

Group Homogeneity

The degree to which members of a group are similar to each other in terms of attitudes, beliefs, or demographic factors.

High Narcissism

A personality trait characterized by an inflated sense of self-importance, need for admiration, and a lack of empathy for others.

Cognitive Ability

The capacity to perform mental processes of perception, memory, judgment, and reasoning, affecting how well someone can learn and solve problems.