Select the Incorrect Statement Regarding Cost S

question 43

Multiple Choice

Select the incorrect statement regarding cost s

• A) Highly leveraged companies will experience greater profits than companies less leveraged when sales increase.
• B) The more variable cost,the higher the fluctuation in income as sales fluctuate.
• C) When sales change,the amount of the corresponding change in income is affected by the company's cost structure.
• D) Faced with significant uncertainty about future revenues,a low leverage cost structure is preferable to a high leverage cost structure.

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Definitions:

Satisfice

A decision-making strategy that aims for a satisfactory or adequate solution, rather than an optimal one.

Optimal

Refers to the most favorable or desirable condition, level, or outcome in a given situation.

Information Overload

The state of being overwhelmed by the vast amount of information available, making it difficult to make decisions or focus.

Sustainability

The ability to maintain or improve certain processes, systems, or materials indefinitely without depleting resources or harming natural cycles.