Fixed costs affect:

Name: Fixed costs affect:
Brand: Quizplus
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Question

Fixed costs affect:

Quizplus · Accepted Answer

Fixed costs primarily affect operating leverage because they are costs that do not change with the level of output or sales, impacting a company's ability to generate profit at different levels of sales. Operating leverage measures how revenue growth translates into growth in operating income, influenced by the proportion of fixed costs in a company's cost structure.

Fixed Costs Affect