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Cost composition
Analyzing the Influence of Operating Leverage on Cost Composition
December 1, 2023
What role does Operating Leverage play in a company's cost structure?
Operating leverage determines the composition of a company's cost structure by influencing the ratio of fixed to variable costs. Higher operating leverage signifies a higher proportion of fixed costs in the cost structure, affecting financial performance and risk exposure.
Tags : Operating Leverage , Cost Structure , Cost Composition