The combination of fixed and variable costs gives rise to operating risk. In finance, companies assess their business risk by capturing a variety of factors that may result in lower-than-anticipated profits or losses. One of the most important factors that affect a company’s business risk is operating leverage; it occurs when a company must incur …
- December 25, 2024
- Bookkeeping
- Comments Off on Degree of Operating Leverage Formula: How to Calculate and Use It
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