An Increase in Fixed Operating Costs Will Result in ________

question 13

Multiple Choice

An increase in fixed operating costs will result in ________ in the degree of operating leverage.

• A) a decrease
• B) an increase
• C) no change
• D) an undetermined change

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Definitions:

Delphi Technique

The Delphi Technique is a forecasting method involving iterative rounds of questionnaires sent to a panel of experts, the results of which are aggregated and shared with the panel until a consensus is reached.

Nominal Group Technique

A structured method for group brainstorming that encourages contributions from everyone in the group to identify and solve problems.

Scenario Planning

A strategic planning method used to make flexible long-term plans based on varying assumptions about future conditions.

Quantitative Model

A mathematical model that represents systems using numerical parameters to predict and analyze their behavior under different scenarios.