One Potential Benefit of High Operating Leverage Is That It

question 107

True/False

One potential benefit of high operating leverage is that it can reduce the average cost per unit at high levels of output,thus generating a competitive cost advantage.

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Definitions:

Novation

The act of replacing an existing contract with a new one, involving a different obligation or party.

Assignment

The transfer of rights, property, or obligations from one party to another, often used in contracts or financial transactions.

Liability

A legal responsibility or obligation that arises from actions, claims, or debts.

Delegation

The act of transferring responsibility and authority from one person or group to another.