If a company has very low operating leverage (i.e. a low proportion of fixed costs in the cost structure) and no changes are expected in operations
a. percentage change income statement percentages can serve as the basis for projecting operating expenses.
b. using common-size income statement percentages will overstate future projected operating expenses.
c. using common-size income statement percentages will understate future projected operating expenses.
d. using common-size income statement percentages can serve as a reasonable basis for projecting future operating expenses.
D
You might also like to view...
List the conditions that contribute to the formation of a high-performance work system.
What will be an ideal response?
Which of the following statements present financial information based on the cash basis of accounting?
A) Balance Sheet B) Income Statement C) Statement of Retained Earnings D) Statement of Cash Flows
Asch’s (1955) study showed:
a. Even when group pressure is not direct, people may make bad judgments. b. People are obedient to authority figures. c. Power is more influential than rewards. d. Conformity is not affected by group size.
Today, ________ of hiring managers use social media as part of their screening processes
A) ?about 25 percent B) about 50 percent C) about 75 percent D) over 90 percent