If Two Companies Have the Same Total Sales and Total

question 23

True/False

If two companies have the same total sales and total expenses and make the same product,the volatility of net operating income with changes in sales will tend to be greater in the company with a higher proportion of fixed expenses in its cost structure.

---

Definitions:

Social Schema

A cognitive framework or concept that helps organize and interpret information about social aspects of the world.

Attribution

The process by which individuals explain the causes of behavior and events.

External Factors

Variables outside an individual or system that can affect its performance or behavior, such as socio-economic conditions, environmental changes, and technological advancements.

Internal Factors

Elements or forces within an individual or organization that affect behavior, decisions, and performance.