Which of the following statements about operating leverage is false? a. The degree of operating...

60.1K

Verified Solution

Question

Accounting

image

Which of the following statements about operating leverage is false? a. The degree of operating leverage is higher for companies with higher fixed costs O b. If the degree of operating leverage higher for a company, this means that the company is more risky than another company with low degree of operating leverage. O c. Keeping all factors constant, the higher the contribution margin, the lower the operating leverage. d. Operating leverage measures how operating income will be affected by changes in sales Oe. All of the given answers are true

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students