To do: Make forum posts: $1$

Due: Sunday, August $17,2025,11$:$59$ PM

Note: If your Turnitin score is more than $24\%,$ you will likely receive a failing grade.

Answer the following questions for this week$$s forum discussion. $($Worth $10$ points$).$

$-$ Estimated time $1-2$ hours each week.

$1)$ Nancy Sound, president of Crosley Corp., has heard about operating leverage and asks you to explain this term. What is operating leverage? How does a company increase its operating leverage?$$

$2)$ Define variable costing and absorption costing. What are some of the benefits to a manager from using variable costing instead of absorption costing for internal decision making?

$3)$ How do differences in production and sales levels affect net income under absorption and variable costing?

$4)$ A CVP income statement is frequently prepared for internal use by management. Describe the features of the CVP income statement that make it more useful for management decision$-$making than the traditional income statement that is prepared for external users.