Which of the Following Statements Is False

question 81

Multiple Choice

Which of the following statements is false?

• A) The purchase of equipment to replace labor in a manufacturing process will increase a firms operating leverage.
• B) The higher the proportion of fixed costs to variable costs in a project, the greater the sensitivity of EBIT to revenue changes.
• C) Depreciation and amortization are considered fixed costs.
• D) The lower the proportion of fixed costs to variable costs in a project, the more pre-tax operating cash flows will vary as revenue varies.

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Definitions:

Circumscribed

Limited or confined within boundaries.

Genetic Makeup

The unique set of genes that an individual inherits from both parents, determining various biological traits and predispositions.

Physical Decline

The gradual reduction in the strength, flexibility, and endurance of the body as a part of the aging process.

Inevitable

Something that is certain to happen; unable to be avoided or escaped.