Companies with High Operating Leverage Have Higher Levels of Fixed

question 73

True/False

Companies with high operating leverage have higher levels of fixed costs and lower levels of variable costs.

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Definitions:

Automation

The technology by which a process or procedure is performed without human assistance.

Task Demands

The aspects of a job or task that require mental or physical effort, setting the baseline for what is expected in performance.

Physical Demands

The requirements for physical effort and stamina that a job entails.

Downsizing

The reduction of an organization's workforce to improve efficiency, performance, or competitiveness, often involving layoffs.