New Free Workshop on RBI Grade B Descriptive Answer Writing - Join Us!
Register

Question

Operating risk is most likely to increase as a result of:

A An increase in sale risk Correct Answer Incorrect Answer
B Increase in the variability of cost Correct Answer Incorrect Answer
C An increase in fixed production cost Correct Answer Incorrect Answer
D An increase in the total cost Correct Answer Incorrect Answer
E None of the above Correct Answer Incorrect Answer

Solution

Operating risk refers to the uncertainty about operating earnings arising from fixed (operating) costs.

Practice Next

Relevant for Exams:

×
×