The difference between variable cost and fixed cost is that the cost amount fluctuates differently based on how many uses are sold.
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Break-even analysis helps a company determine what amount of quantity it needs to sell in order to reach zero profit.
A. 对
B. 错
If economic conditions were expected to be favorable, an investor would likely prefer a firm with a low degree of leverage.
A. 对
B. 错
The use of financial leverage must consider both risk and maximizing profit.
A. 对
B. 错
The closer a firm is to its break-even point, the lower the degree of operating leverage it will be.
A. 对
B. 错