The Use of Debt Is Called

question 4

Multiple Choice

The use of debt is called:

• A)operating leverage.
• B)production leverage.
• C)financial leverage.
• D)total asset turnover risk.
• E)business risk.

---

Definitions:

Process

A series of actions or steps taken in order to achieve a particular end in business or manufacturing.

Job Order

A work instruction or order for producing a specific quantity of a product or service according to customer specifications.

Conversion Cost

The combined costs of direct labor and manufacturing overheads associated with converting raw materials into finished products.

Direct Labor

The labor cost of workers who are directly involved in the manufacture of products or the provision of services.