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From among the following choices, identify those which are correct about operating espense perve L.It is a financial indicato

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option (a) 1 & 2 only is the correct choice.

Choice 1. Is correct because in long term management can analyse the business and can easily able to control the operating expenses. It can cut unwanted excess expenses.

Choice 2. is correct because when significant control over operating expenses is gained, the unwanted over expenses are decreased which results in lowering the operating expenses and excess burden of exp. over revenue is decreased. As a result, inflow of cash improves.

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