operating leverage
DefinitionThe 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. The higher income vs. sales ratio results from a smaller portion of variable costs, which means the company does not have to pay as much additional money for each unit produced or sold. The more significant the volume of sales, the more beneficial the investment in fixed costs becomes.
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operating leverage is ...
... part of the Accounting subject.
... part of the Accounting subject.
operating leverage appears in the definitions of these other terms on BusinessDictionary.com
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