Examlex
__________ are directed towards improving chances for future projects to meet their goals.
Operating Leverage
The degree to which a firm or project can increase operating income by increasing revenue, reflecting the proportion of fixed costs to variable costs.
Financial Leverage
The use of borrowed funds to increase the potential return of an investment, which can also increase the risk of loss.
Fixed Costs
Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.
Average Cost
A method of inventory costing, or determining an investment's cost, by taking the total cost of items and dividing it by the total number of items.
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