Operating Leverage: Introduction, Method and Degree
After reading this article you will learn about Operating Leverage:- 1. Introduction to Operating Leverage 2. Method of Computing Operating Leverage 3. Degree 4. Relationship between Operating Leverage and CVP Analysis. Introduction to Operating Leverage: Operating leverage arises when the operating profit varies disproportionately with the amount of sales, i.e., it appears from the existence of fixed operating expenses. Because [...]