Operating risk is best defined as uncertainty regarding:
A) the price and quantity of goods and services sold.
B) operating earnings based on the mix of fixed and variable operating costs.
C) the earnings to owners, influenced by the degree to which assets are financed by debt (relative to equity).

Question

Quizplus · Accepted Answer

Operating risk is primarily concerned with the uncertainty in operating earnings that arises from the company's mix of fixed and variable operating costs.

Operating Risk Is Best Defined as Uncertainty Regarding