Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. which of the following statement is true? -operati

Which of the following statement is true? -Operating leverage refers to a company's ability to...

80.2K

Verified Solution

Question

Accounting

Which of the following statement is true?

-Operating leverage refers to a company's ability to increase its sales volume while decreasing its total fixed cost.

-A company that has only variable cost cannot benefit from operating leverage.

-To benefit from operating leverage a company must have both fixed and variable costs.

-Operating leverage may help a company increase its profitability but it cannot decrease profitability.

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

Q

What kind of change is rusting of iron and what kind of change is conversion of...

Chemistry
Q

AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost...

Accounting
Q

D Two metallic spheres of radii a and b are placed away from each other...

Physics
Q

The centre of a solid sphere of mass m and radius R placed on a...

Physics
Q

Two wires support a flagpole FH The first wire is 11 2 meters long and...

Geometry
Q

4 Find all solutions to the trigonometric equation tan 0 sec 0 1

Calculus
Q

Private mortgage insurance can be tax deductible as interest expense on itemized deductions, Select one:...

Accounting
Q

Help & Save is a private not-for-profit entity that operates in Kansas. Swim For Safety...

Accounting
Q

(a2) Compute the cost of the ending inventory and the cost of goods sold under...

Accounting
Q

During the 2020 year, Byrd Corporation incurred costs of $61000 for leasehold improvements to its...

Accounting
Q

The following financial statements and information are available for Solomon Industries Inc. Balance Sheets As...

Accounting
Q

Cash flows for construction project VS Cash Flows for Construction Companies What are 2...

Accounting