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.

---

Definitions:

Neutrons

Subatomic particles without an electric charge, found in the nucleus of an atom, contributing to the atom's mass.

Electrons

subatomic particles with a negative charge, found in all atoms and acting as the primary carrier of electricity in solids.

Valence Shells

The outermost electron shell of an atom that determines its bonding behavior with other atoms.

Cation

A particle with one or more units of positive charge, such as a hydrogen ion (H+) or calcium ion (Ca2+). Compare with anion.