Which of the Following Statements Is Not True

Multiple Choice

Which of the following statements is not true?

A) Operating leverage refers to the extent to which a company's net income reacts to a given change in sales.
B) Companies that have higher fixed costs relative to variable costs have higher operating leverage.
C) When a company's sales revenue is increasing, high operating leverage is good because it means that profits will increase rapidly.
D) When a company's sales revenue is decreasing, high operating leverage is good because it means that profits will decrease at a slower pace than revenues decrease.