Operating Leverage Is the Use of Fixed Cost to Extract

question 106

True/False

Operating leverage is the use of fixed cost to extract higher percentage changes in profits as sales activity changes.

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Definitions:

Peripheral Route

A mode of persuasion in the Elaboration Likelihood Model where individuals are influenced by incidental cues, such as the attractiveness of the speaker, rather than the strength of the arguments.

Vested Interest

A personal stake or involvement in an undertaking or situation, especially one with an expectation of financial or other gain.

Direct Personal Experience

Firsthand encounters or involvement in situations, events, or activities, without intermediaries.

Attitudinal Object

Any subject or entity toward which an individual holds a specific attitude.