A Very High Degree of Operating Leverage Indicates a Firm

question 5

Multiple Choice

A very high degree of operating leverage indicates a firm

• A)has high fixed costs.
• B)has a high net income.
• C)has high variable costs.
• D)is operating close to its break-even point.

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Definitions:

Self-Monitoring

The practice of attentively observing one's own behavior and responses in various situations to adjust them in order to achieve desired outcomes.

Low

Refers to a position, level, or figure that is less than average or normal; often associated with quantity, quality, or degree.

Nonreactive

Describes a substance or material that does not chemically react under a set of given conditions.

Reactive

describes a response or behavior that is made in reaction to a stimulus or situation, rather than initiating action independently.