High Operating Gearing Refers To

question 25

Multiple Choice

High operating gearing refers to:

• A)an activity with fixed costs equal to its variable costs.
• B)an activity with relatively high variable costs compared with its fixed costs.
• C)an activity with relatively low fixed costs compared with its variable costs.
• D)an activity with relatively high fixed costs compared with its variable costs.

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Definitions:

Y-intercept

The point where a line crosses the Y-axis of a graph.

Linear Regression

A statistical method for modeling the relationship between a dependent variable and one or more independent variables using a linear equation.

Dependent

Suggests a reliance on something else for value, substance, or outcome; often used in context with variables in research where one variable's response is contingent on another's action.

Coefficient Of Correlation

A numerical measure that illustrates the magnitude and direction of a relationship between two variables or sets of data.