The Manager of Kenton Company Stated That 45% of Its

question 143

Multiple Choice

The manager of Kenton Company stated that 45% of its total costs were fixed.The manager was describing the company's:

• A) operating leverage.
• B) contribution margin.
• C) cost structure.
• D) cost averaging.

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Definitions:

Time Preference

The inclination of individuals to prefer goods and services in the present rather than in the future.

Time Preference

This concept describes individuals' preference for immediate benefits over future ones, influencing their decisions on saving, investing, and consumption.

Time Preference

An individual's preference for receiving goods or services sooner rather than later.

Capital Goods

Long-term physical assets used in the production of goods or services, such as machinery and buildings.