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____________,____________,And ______________ Are Known as the ABC's of a Decision

question 17

Multiple Choice

____________,____________,and ______________ are known as the ABC's of a decision.


Definitions:

Operating Leverage

A measure of how revenue growth translates into an increase in operating income, indicating the extent to which a company can increase profitability by increasing sales.

Financial Leverage

The use of borrowed funds in an attempt to increase the returns to equity.

Fixed Costs

For expenses like rent, salaries, and insurance premiums, their amounts do not fluctuate with the levels of output or sales.

Variable Costs

Costs that change in proportion to the level of goods or services produced by a business.

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