The Higher a Project's Operating Leverage, _____

question 74

Multiple Choice

The higher a project's operating leverage, _____.

• A) the lower the sensitivity of EBIT to changes in revenue
• B) the greater the sensitivity of EBITDA to changes in revenue
• C) the lower the sensitivity of net profit to changes in variable costs
• D) the greater the sensitivity of net profit to changes in variable costs

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Definitions:

Administrative Procedure Act (APA)

A federal U.S. law that governs the way administrative agencies of the federal government may propose and establish regulations, and grants the American public the right to participate in the rulemaking process.

Federal Agency Procedure

The set of rules and processes that federal agencies in the United States must follow in executing their functions, including rulemaking, enforcement, and adjudication.

Agency Action

Any action taken by a governmental agency, ranging from rule-making to enforcement and adjudication.

Unsubstantiated

Lacking adequate support, proof, or confirmation, often used in the context of claims or allegations that have not been verified.