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:

Task

A piece of work or activity assigned to someone as part of a job or course of study, often requiring effort to complete.

Intent

The purpose or plan that guides an individual's actions or the deliberate determination to perform a specific act.

Logan And Etherton

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Target Words

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