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How does a company's operating leverage effect itsprofitability? 200 wordsHow does a company's operating...

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Accounting

How does a company's operating leverage effect itsprofitability? 200 words

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Operating leverage Operating leverage reflects the relationship between variable and fixed costs in a companys cost structure High operating leverage Means large proportion of the costs are fixed costs and it implies that the lower proportion are variable costs Low Operating Leverage Means lower proportion of the costs are    See Answer
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In: AccountingHow does a company's operating leverage effect itsprofitability? 200 wordsHow does a company's operating leverage effect itsprofitability? 200 words

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