Explain fixed and variable costs and operating leverage

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Explain Fixed and Variable Costs and Activity-Based Costing and Operating Leverage

Q 1. What are some examples of fixed and variable costs from your workplace? Which costs may have both variable and fixed components? How can this be resolved for analysis purposes? I work for civil service in the Army. We're an international school that trains foreign students. We are funded by DoD.

Q 2. When is it appropriate for companies to use activity-based costing? How might activity-based costing be used in your company? What are some differences between ABC and traditional costing?

Q 3. What is the definition of operating leverage? How does operating leverage differ in manufacturing, service, merchandising, and e-commerce companies? How can operating leverage be used to increase a company's profitability?

Reference no: EM1330370

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