Asked by
Ahmed Elattare
on Dec 09, 2024Verified
All else the same, if you decrease fixed costs, operating leverage will also decline.
Operating Leverage
A measure of how revenue growth translates into growth in operating income due to fixed versus variable costs in business operations.
- Assess the financial consequences of modifications in cost structures regarding the appraisal of projects.
Verified Answer
PH
Learning Objectives
- Assess the financial consequences of modifications in cost structures regarding the appraisal of projects.