Which statement about operating leverage is true

Assignment Help Accounting Basics
Reference no: EM13134795

Which statement about operating leverage is true?

A. Companies with low fixed costs have high operating leverage.
B. Companies with low fixed costs have low operating leverage.
C. Companies that rely heavily on debt have low operating leverage.
D. Companies with a low variable cost ratio have low operating leverage.

Reference no: EM13134795

Questions Cloud

Assign probabilities to the sample points : The retailer is interested in their preferences. List the possibilities for preference arrangements among the four customers.
Determine the tax consequences of the stock redemption : Determine the tax consequences of the stock redemption to White Corporation (E & P of $7 million), to Gray Corporation, and to Helen
Calculate the final temperature : A 10.4-g sample of CaCl2 is dissolved in 107 g of water, with both substances at 25.0°C. Calculate the final temperature of the solution assuming no heat lost to the surroundings and assuming the solution has a specific heat capacity of 4.18 J/°C ..
How you report equipment that cost with accumulated : how you report equipment that cost $27,000 with accumulated depreciation ot $25,000 sold at a gain of $10,600 on a indirect cash flows statement?
Which statement about operating leverage is true : Which statement about operating leverage is true?
Find standardized aptitude test is normal with mean : What is the minimum score needed to be in the top 25% on this test? Carry your intermediate computations to at least four decimal places.
Calculate ulster company budgeted selling expenses : The company estimates that the sales representatives will drive a total of 75,000 miles next year. From the information provided, calculate Ulster Company’s budgeted selling expenses for the coming year.
Decisions are stored online : A business simulation game that is used by colleges and universities all over the world has students submit decisions over the Internet. Decisions are stored online, processed on the server, and then the results are stored online.
Calculate the rate of production of h2o : The rate of decomposition of C3H6 in the following reaction is 0.45 M/s.  Calculate the rate of production of H2O. 2 C3H6 + 2 NH3 + 3 O2 → 2 CH2CHCN + 6 H2O

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much revenue should shaw recognize related

prepare the journal entry (if any) to record the sale on January 2, 2012 shaw prepares an income statement for the first quarter of 2012, ending on March 31, 2012. How much revenue should Shaw recognize related to its sale to ricard?

  Does warranty accrual decision create any ethical dilemma

Does warranty accrual decision create any ethical dilemma for Bly and since warranty expenses vary, what % do you think Bly could select for the current year? Justify your response.

  Walgreens accounting policies

Explain the meaning of the increase or decrease in the LIFO reserve during the 2010. What does this tell you about inventory costs for the company? Are they rising or falling? Explain.

  Preparing a journal entry for carlton company

Prepare a journal entry for carlton company sells office equipment on sept.2007, for $21,000 cash. the office equipment originally cost $72,000 and as of Jan.1 2007 had accumulated deprication of $42,000. Depreciation for the first 9 months of 200..

  What is the amount of yap co owner equity

The total assets of Yap Co. are $600,000 and its liabilities are equal to two-thirds of its total assets. What is the amount of Yap Co.'s owner's equity?

  Conservative and minimax regret approaches

The following payoff table shows the profit for a decision problem with three states of nature and two Decision Alternatives (DA):

  Estimating the contract cost

During the year, job 123 a firm fixed price contract for the production of 3,000 raincoats will be started and completed. Estimate the contract cost.

  Difference between operating and nonoperating

What is the difference between operating and nonoperating items? And why do we show the difference in the financial statements?

  Investment in debt securities

Prepare the entry for May 1, 2007. The bonds are sold on August 1, 2008 for $425,000 plus accrued interest. Prepare all entries required to properly record the sale. (Show all calculations).

  Post the transactions to t-accounts

Post the above transactions to T-accounts. Determine the cost of goods sold for the period.  Jurvin Enterprises recorded the following transactions for the just completed month. The company  had no beginning inventories.

  What controls should an organization

What controls should an organization like Tyco implement to ensure that such transactions do not take place in the future?

  Determine the amount of additional financing needed

Consider the Industrial Supply Company example again. Assume that the company plans to maintain its dividend payments at the same level in 2009 as in 2008.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd