________ Is the Potential Use of Fixed Operating Costs to Magnify

question 110

Multiple Choice

________ is the potential use of fixed operating costs to magnify the effects of changes in sales on earnings before interest and taxes.

• A) Financial leverage
• B) Operating leverage
• C) Operating budget
• D) Ratio analysis

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Definitions:

Fair Distribution

Fair distribution is the equitable allocation of resources, benefits, and duties among all members of a society, based on principles of fairness and justice.

Loyalty

The quality of being loyal; a strong feeling of support or allegiance to someone or something.

Grave Ethical

Pertaining to serious and morally significant ethical dilemmas or issues that require careful thought and consideration.

Rights

Legal, social, or ethical principles of freedom or entitlement; the fundamental norms about what is allowed or owed to people.