Companies with Low Operating Leverage Have Relatively Higher Variable Costs

question 231

True/False

Companies with low operating leverage have relatively higher variable costs and lower fixed costs.

---

Definitions:

Perceptual Set

A psychological predisposition or readiness to perceive certain features of the environment while ignoring others.

Relative Luminance

A measure of the amount of light that comes from a source or is reflected by a surface, compared to the amount of light coming from a reference source.

Shape Constancy

The perceptual phenomenon by which we recognize objects as having a constant shape despite changes in the angle of vision, distance, and lighting.

Interposition

A visual cue in depth perception where one object partially covers another, suggesting that the covering object is closer to the viewer.