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In some spontaneous processes, the entropy of the surroundings decreases.
Operating Leverage (DOL)
Operating leverage measures how revenue growth translates into growth in operating income. It is a measure of how sensitive the operating income is to the change in revenues.
Fixed Costs
Expenses that do not change with the level of production or sales, such as rent or salaries.
Variable Cost
A cost that changes with the level of output or production, such as materials and labor costs.
EBIT
Earnings Before Interest and Taxes; a measure of a company's profitability that excludes interest and income tax expenses.
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