Companies with high operating leverage have higher levels of fixed costs and lower levels of variable costs.

Name: Companies with high operating leverage have higher levels of fixed costs and lower levels of variable costs.
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Question

Quizplus · Accepted Answer

High operating leverage means that most of the costs are fixed, such as rent, salaries, and depreciation. Variable costs like materials, labor, and utilities are lower in proportion compared to fixed costs.

Companies with High Operating Leverage Have Higher Levels of Fixed