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Cost flexibility

Mitigating Risk through Operating Leverage

November 28, 2023

How can operating leverage be used to reduce risk?

Employing operating leverage judiciously involves balancing fixed and variable costs. By maintaining a balanced cost structure and diversifying products or services, a company can reduce its dependency on a single revenue source, mitigating risk exposure.

Tags : Operating Leverage , Risk Mitigation , Cost Flexibility

Evaluating Operating Leverage's Influence on Market Expansion

November 28, 2023

Can Operating Leverage impact a company's ability to expand into new markets?

Operating leverage affects a company's expansion into new markets by influencing cost structures. High fixed costs may pose challenges in adapting to diverse market demands, while flexible cost structures facilitate smoother expansions.

Tags : Operating Leverage , Market Expansion , Cost Flexibility

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