Companies a and B Are in the Same Industry and Are

question 93

Multiple Choice

Companies A and B are in the same industry and are identical except for cost s

• A) Company A's cost structure has more variable costs than B's.
• B) Company A's cost structure has higher fixed costs than B's.
• C) Company B's cost structure has higher fixed costs than A's.
• D) At a volume of 50,000 units,Company A's magnitude of operating leverage was lower than B's.

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Definitions:

Influences

Forces or factors that have an effect on the behavior, opinions, or development of someone or something.

Sleeper Effect

A delayed increase in the impact of a message that occurs when an initially discounted message becomes effective, as the reason for discounting it is forgotten.

Phenomenon

An observable event or fact, especially one that is significant, unusual, or extraordinary.

Message

is a piece of information or communication conveyed from one person to another, either verbally, written, or through another medium.