Question: Which statement is true about operating gearing? a.Operating gearing is the relationship between the total fixed and the total variable costs for some activity. b.If

Which statement is true about operating gearing?

a.Operating gearing is the relationship between the total fixed and the total variable costs for some activity.

b.If a company with low operating gearing can double its output, its profit will increase by a higher factor than if it had high operating gearing.

c.If fixed costs are relatively high compared to variable costs, the company has low operating gearing.

d.Capital-intensive activities have lower operational gearing than labour-intensive activities.

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