Operating Leverage Predicts the Effects That Fixed Costs Have on Operating

question 256

Multiple Choice

Operating leverage predicts the effects that fixed costs have on operating income when ________.

• A) production is discontinued
• B) there are no sales returns
• C) variable costs change
• D) sales volume changes

---

Definitions:

Relational Understanding

A deep level of comprehension and appreciation of the connections and relationships between concepts or entities.

Reproach

Message that a failure event has occurred.

Invulnerable

The state of being immune to harm, damage, or the negative effects of something.

Vulnerable

describes a state of being open to harm, attack, or criticism, often due to a lack of protection or strength.