What IT Professionals Call Transaction Cycles, Accountants Refer to as Business

question 12

True/False

What IT professionals call transaction cycles, accountants refer to as business processes.

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the extent to which a firm uses fixed versus variable costs.

Variable Cost

Costs that change in proportion to the level of output or activity in a business.

Fixed Costs

Costs that do not vary in proportion to the level of goods or services produced by a business, such as rent, salaries, and insurance premiums.

Operating Leverage

Operating Leverage is a measure of how revenue growth translates into growth in operating income, determined by the proportion of fixed versus variable costs a company has.