Which Is Characteristic of Operating Leverage

question 24

Multiple Choice

Which is characteristic of operating leverage?

• A)concerned with the relative mix of contribution margin and margin of safety
• B)the use of fixed costs to extract higher percentage changes in profits as sales activity changes
• C)likely to be lower in an automated manufacturing system than in a manual system
• D)provides the same information as margin of safety

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Definitions:

Collision Theory

A theory that proposes chemical reactions occur and proceed at a certain rate based on the concentration, velocity, and orientation of reacting particles during collisions.

Rate Of Formation

The speed at which a product is created in a chemical reaction, usually measured in moles per liter per second.

High-energy Particles

Particles that possess energy significantly greater than average, often referring to subatomic particles such as protons, neutrons, and cosmic rays.

Accumulated Degree Hours

A measurement unit for the thermal energy accumulated, used in forensic entomology to estimate the time since death based on insect development.