1. “Operating Leverage” is the use of fixed costs to magnify returns at high levels of operations.

Answer : True

Explaination:

Operating leverage is a measurement of the degree to which a firm or project incurs a combination of its fixed and variable costs.

A business have a Higher portion of fixed cost and low portion of the variable cost can be considered as using more operating leverage

2. Property taxes and depreciation expenses are examples of variable costs.

Answer :False

Explaination

Following are considered as fixed cost

depreciation expense

property tax,

Office salaries,

the production supervisors salary etc.