The extent to which fixed costs are used in a firm's operations.
Fixed operating costs, which are characterized as leverage because they accentuate variations in profits.
The trade-off between fixed and variable costs in the operation of the firm.
The extent to which fixed costs and variable costs are used in the production and marketing of products and services.
Operating profit margin Operating rate
The ratio of the percentage change in profit to the percentage change in sales.
Fixed operating costs, so-called because they accentuate variations in profits.
Operating Leverage refers to the ability to gain profit from revenue (calculated as Profit after Tax divided by Revenue).
The difference between revenue growth and cost growth.
A measurement of the degree to which a firm or project relies on fixed rather than variable costs.
The operating leverage is a measure of how revenue growth turns into earnings growth. It can be a ratio of fixed costs to variable costs incured to generate the revenue. Depending on the product, it can be generated by the ratio of preproduction costs (i.e. design widgets) versus incremental production costs (i.e. produce a widget).