100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
IET 414 Exam 2 || with Accurate Answers 100%. $9.99   Add to cart
Quickly navigate to
Preview
  2.  
  3. IET 414
  4.  
  5. IET 414

Exam (elaborations)

IET 414 Exam 2 || with Accurate Answers 100%.
 5 views  0 purchase
  • Course
  • IET 414
  • Institution
  • IET 414

What is operating leverage? correct answers Comparing a company's fixed VS variable costs What does a company with high operating leverage look like? correct answers A business that generates sales with a high gross margin and low variable costs True or False Operating Leverage is used to ...

[Show more]

Preview 1 out of 3  pages

Document information

  • August 4, 2024
  • 3
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • what is operating leverage

Written for

  • IET 414
  • IET 414

Seller

avatar-seller
FullyFocus

Reviews received

Content preview

IET 414 Exam 2 || with Accurate Answers 100%.
What is operating leverage? correct answers Comparing a company's fixed VS variable costs

What does a company with high operating leverage look like? correct answers A business that
generates sales with a high gross margin and low variable costs

True or False

Operating Leverage is used to calculate a company's break-even point. correct answers True.

This helps businesses set appropriate selling prices to cover all costs to help generate a profit.

What is break-even point? correct answers The point where total revenue equal total expenses

Why do businesses hold cash? correct answers Transaction motives (Payment towards planned
expenses) Supplies, payrolls, taxes

Compensation motives (Compensate a bank for services)

Precautionary motives (For emergency purposes) Very common for seasonal industries

Float correct answers Difference between a firms recorded amount and the amount credited to a
firm by the bank.

What are the different types of float? correct answers Mail float & Clearing float

Clearing float is... correct answers The amount of time it takes for a check to clear once a
payment is made

Typical ratios used for accounts receivable collection include correct answers Turnover

Turnover = correct answers Credit sales / Average Receivable balance

What are inventory carrying costs? correct answers Cost of warehouse space, Insurance
premiums, Material handling expenses

What are some benefits of having a level production plan correct answers Maximum efficiency
of manpower & machine use - Much cheaper.

What is Dun and Bradstreet? correct answers Database that produces business information
analysis tools

How does Dun and Bradstreet help companies? correct answers Offers data analytics to help
businesses make decisions based on their data

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller FullyFocus. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $9.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67866 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$9.99
  • (0)
  Add to cart