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:

Stereotype Interchangeability

The principle that negative stereotypes are often interchangeable from one racial group (or gender or social class) to another.

Status

The relative social, professional, or other standing of someone or something within a society or group.

Latino/Latina

Persons of Latin American origin or descent, used as a gender-specific term reflecting cultural heritage and identity.

Single Ethnicity

Pertains to individuals or groups that identify with or belong to only one specific ethnic background, culture, or heritage.