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Companies often use leverage to help augment profits. From your accounting knowledge discuss if you think too much leverage is good or bad.  What are the benefits and challenges related to implementing an activity based costing system?

There are two types of leverage that may be employed in managing a business.  One is financial leverage and the other is operating leverage.  In our chapter this week, we are discussing operating leverage.

Companies often use operating leverage to help augment profits.  From your accounting knowledge, discuss if you think too much operating leverage is good or bad.  What are the benefits and challenges related to implementing an activity based costing system?

 

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