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Operating leverageThe use of fixed costs in operations.
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Operating leverageDefinition The percentage of fixed costs in a company's cost structure. Generally, the higher the operating leverage, the more a company's income is affected by fluctuation in sales volume. [..]
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Operating leverageThe trade-off between fixed and variable costs in the operation of the firm.
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Operating leverageThe extent to which fixed costs are used in a firm's operations.
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Operating leverageThe ability to magnify profits from increases in sales due to a firm's operating costs being largely fixed than variable. When the proportion of VRIABLE COSTS is small, any increase in sales resu [..]
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Operating leverageHigh operating leverage (also known as operating gearing) means that fixed costs (predominantly property and staff) are a high proportion of total costs in the profit and loss account.
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Operating leverage The use of fixed operating costs by the firm. [Chapter 16] Opportunity cost
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Operating leverageFixed operating costs, which are characterized as leverage because they accentuate variations in profits.
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