Theoretically, in computing the receivables turnover, the numerator should include

Operating leverage predicts the effects fixed costs have on changes in operating income when sales volume changes

Indicate whether the statement is true or false

________ are price reductions given for out-of-season merchandise—snowmobiles discounted during the summer, for example. The intention of such discounts is to spread demand over the year, which can allow fuller use of production facilities and improved cash flow during the year.

Fill in the blank(s) with correct word.