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Additional Concepts
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Cash Break-Even
It refers to the point at which a business generates just enough revenue to cover its operating expenses, indicating no profit or loss.
Degree of Operating Leverage
A financial ratio that measures the sensitivity of a company’s operating income to its sales, indicating how a change in sales volume will impact operating income.
Forecasting Risk
The risk that a forecast may prove to be incorrect, potentially leading to financial losses or missed opportunities in financial markets.
Cost-Cutting Proposal
A plan or suggestion aimed at reducing expenses to improve profitability.
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