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Fixed Costs
Expenses that remain constant regardless of the level of production or business activity.
Operating Leverage
Refers to the extent to which a company uses fixed costs in its production process, impacting profitability with changes in sales volume.
Safety Margin
The difference between the actual level of performance or capacity and the minimum required level, serving as a buffer or contingency.
Labour-Intensive Firm
A company that requires a high level of labor input compared to capital investment in its operations.
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