Site MapHelpFeedbackMultiple Choice
Multiple Choice
(See related pages)



1

An example of a semi-variable cost is:
A)rent
B)raw material
C)depreciation
D)utilities
2

_____________ is the point at which firm profit is equal to zero.
A)breakeven
B)operating breakeven
C)financial leverage
D)combined breakeven
3

In breakeven analysis, if fixed costs rise, then the breakeven point will __________.
A)fall
B)rise
C)stay the same
D)none of the above
4

In the breakeven formula, Price - Variable Cost is called the_____________.
A)breakeven point
B)leverage
C)contribution margin
D)none of the above
5

Which of the following types of firms may operate with high operating leverage?
A)a doctor's office
B)an auto manufacturing facility
C)a mental health clinic
D)none of the above would have high operating leverage
6

The ____________________ is the percentage change in operating income that results from a percentage change in sales.
A)degree of financial leverage
B)breakeven point
C)degree of operating leverage
D)degree of combined leverage
7

If interest expenses for a firm rise, we know that firm has taken on more ______________.
A)financial leverage
B)operating leverage
C)fixed assets
D)none of the above
8

The ________________ is the percentage change in earnings per share that results from a percentage change in operating income.
A)degree of combined leverage
B)degree of financial leverage
C)breakeven point
D)degree of operating leverage
9

Combined leverage is the percentage change in relationship between sales and ____________.
A)operating income
B)operating leverage
C)earnings per share
D)breakeven point
10

A highly leveraged firm is __________ risky than its peers.
A)less
B)more
C)the same
D)none of the above





To learn more about the book this website supports, please visit its Information Center.
(c)2005 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Policy.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.


block11eOnline Learning Center with Powerweb

Home > Chapter 5 > Multiple Choice Quiz