Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which of the following statements regarding Cost Structure is FALSE? O It could effect the Contribution Margin Ratio O It could effect the Break-Even point

image text in transcribed
Which of the following statements regarding Cost Structure is FALSE? O It could effect the Contribution Margin Ratio O It could effect the Break-Even point O It could effect the Margin of Saftey Ratico O It has no effect on profitability Question 14 3 pt Wihich of the following statements regarding Operating Leverage is FALSE? 0 A high operating leverage is good when sales are increasing O If fixed costs are higher in relation to variable costs the companv is said to have a higer operating leverage. A cost structure that has a high operating leverage is not desirable The more a company relies on fixed costs, the more riskier the company is

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Robert F. Meigs, Jan R. Williams, Susan F Haka, Mark S. Bettner

10th Edition

0072316373, 978-0072316377

More Books

Students also viewed these Accounting questions

Question

describe the two basic forms of functional social support;

Answered: 1 week ago

Question

=+2. Are you happy to pay a price premium for CSR products?

Answered: 1 week ago