The Operating Leverage Factor Indicates the Percentage Change in Operating

question 111

True/False

The operating leverage factor indicates the percentage change in operating income that will occur from a 5% change in volume.

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Definitions:

Maintenance Rehearsal

Mechanical repetition of material without thinking about its meaning or patterns.

Primacy Effect

A cognitive bias that results in the tendency to remember information that was encountered first better than information that was presented later on.

Recency Effect

The tendency to remember the most recently presented information better than information presented earlier.

Free Recall

Free recall is a memory test in which an individual is asked to remember and reproduce information in any order without any specific cues.