The Extent to Which an Organization's Cost Structure Is Made

question 16

Multiple Choice

The extent to which an organization's cost structure is made up of fixed costs is called its

• A)fixed cost leverage.
• B)operating leverage.
• C)fixed cost multiple.
• D)long-term leverage.

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Definitions:

Ethanol

A volatile, flammable, clear liquid commonly used as a biofuel and in the manufacturing of various chemical compounds.

Methane

A potent greenhouse gas with a significant impact on global warming, more effective than carbon dioxide over a short period.

Butane

A hydrocarbon gas that is a constituent of natural gas and petroleum, used as fuel, in cigarette lighters, and as a propellant in aerosol sprays.

Biogas Digester

A device or structure that breaks down organic matter anaerobically (without oxygen) to produce biogas, a renewable energy source, and digestate, a nutrient-rich fertilizer.