The Lowest Possible Operating Leverage Factor for a Company Is

question 230

Multiple Choice

The lowest possible operating leverage factor for a company is 1 and only occurs when

• A)variable costs are zero.
• B)a company has the same amount of variable and fixed costs.
• C)fixed costs are zero.
• D)the company is at breakeven.

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Definitions:

Culture of Poverty

A concept in social theory that suggests that poverty is not only a result of lack of resources but is also perpetuated by the values and behaviors of those affected.

Mainstream Social Life

The dominant trends, behaviors, and cultural norms that are widely accepted and practiced by the majority of a society.

Absolute Deprivation

A condition characterized by the absence of basic needs required for physical well-being, such as food, shelter, and healthcare, irrespective of societal norms or relative measures.

Poverty Threshold

The minimum level of income deemed adequate in a particular country, determining which individuals or families are classified as living in poverty.