Answered: A business that has a low operating…

A business that has a low operating leverage is considered normal for highly automated manufacturing businesses. Group of answer choices True False

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 3DQ: Explain how a plantwide overhead rate, using a unit-based driver, can produce distorted product...

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A business that has a low operating leverage is considered normal for highly automated manufacturing businesses.

Group of answer choices

True

False

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"Simplification of all costs into only fixed and variable costs distorts the actual cost behavior pattern of a firm. Yet businesses rely on this method of cost classification." Comment