What is the operating leverage? - Operating leverage is the use of fixed operating costs to increase the effects of sales changes on earnings bef...
What is the operating leverage?
- Operating leverage is the use of fixed operating costs to increase the effects of sales changes on earnings before interest and taxes (EBIT).
- Operating leverage can be defined as the use of fixed operating costs to increase the effects of changes in sales on earnings before interest and taxes (EBIT).
- Operating leverage is due to the existence of fixed costs that the company must pay to operate.
- Operating leverage refers to the effects that fixed costs have on shareholder returns.
- Operating leverage can be achieved by manufacturing their own products or subcontracting another company to manufacture them.
- Operating leverage is the use of fixed operating costs to increase the effects of sales changes on earnings before interest and taxes (EBIT).
- Operating leverage can be defined as the use of fixed operating costs to increase the effects of changes in sales on earnings before interest and taxes (EBIT).
- Operating leverage is due to the existence of fixed costs that the company must pay to operate.
- Operating leverage refers to the effects that fixed costs have on shareholder returns.
- Operating leverage can be achieved by manufacturing their own products or subcontracting another company to manufacture them.
Essa pergunta também está no material:
💡 1 Resposta
Ed 
Operating leverage refers to the use of fixed operating costs to amplify the impact of changes in sales on a company's earnings before interest and taxes (EBIT). It is a measure of how sensitive a company's profits are to changes in sales volume. By having a higher proportion of fixed costs in its cost structure, a company can experience greater fluctuations in profitability when sales increase or decrease. This can work in favor of a company when sales are growing, as it can lead to higher profits. However, it can also pose risks when sales decline, as it can result in larger losses.
✏️ Responder
Para escrever sua resposta aqui, entre ou crie uma conta
Outros materiais
Perguntas relacionadas
Materiais relacionados
16 pág.
Compartilhar