Increased variability of operating income is associated with
A) increased interest expense
B) increased variable cost
C) increased taxes
D) increased fixed costs

Question

Increased variability of operating income is associated with​
A) ​increased interest expense
B) increased variable cost​
C) increased taxes​
D) increased fixed costs​

Quizplus · Accepted Answer

Increased variability of operating income is associated with increased fixed costs because fixed costs do not vary with changes in sales volume or revenue. This means that any changes in revenue or sales volume will directly impact operating income, resulting in increased variability.

Increased Variability of Operating Income Is Associated With​

Increased Variability of Operating Income Is Associated With