________ Costs Are Expected Future Costs and Relevant Revenues Are

question 185

Multiple Choice

________ costs are expected future costs and relevant revenues are expected future revenues that differ between the optional courses of action being considered.

• A)Relevant
• B)Quantitative
• C)Qualitative
• D)Financial

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income due to fixed costs in a company's business model.

Tax Rate

The percentage at which an individual or corporation is taxed by the government on their income or profits.

Cost of Debt

The effective rate that a company pays on its current debt, which can be measured in terms of either the before-tax or after-tax cost.

Personal Tax Rate

The percentage of an individual's income that is paid to the government in taxes.