The Extent to Which an Organisation Uses Fixed Costs in Its

question 74

Multiple Choice

The extent to which an organisation uses fixed costs in its cost structure is called

• A) financial leverage.
• B) operating leverage.
• C) fixed cost leverage.
• D) operating leverage AND fixed cost leverage.

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Definitions:

Business Decisions

The choices made by individuals or groups in a business context that affect the organization's strategy and operations.

Meganational Strategy

A business approach that focuses on operating and competing in several countries around the world, leveraging global efficiencies and multicultural effectiveness.

Multidomestic Strategy

A multidomestic strategy is a business approach wherein a company tailors its products, marketing, and operations to suit the specific needs and preferences of each country or market it enters, rather than standardizing them across the board.

Decentralization

The process of distributing or dispersing functions, powers, people, or things away from a central location or authority.