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Operating Leverage
A financial ratio that measures the proportion of fixed costs to variable costs in a company's cost structure, indicating how a change in sales volume can impact profits.
Fixed Costs
Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.
Cost-volume-profit Analysis
An accounting technique used to determine how changes in costs, sales volume, and price affect a company's profit.
Cost-volume-profit Analysis
An accounting method used to determine how changes in costs and volume affect a company's operating income and net income.
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