Examveda
Examveda

Operating leverage measures ____________.

A. business risk

B. financial risk

C. both risks

D. production risk

Answer: Option A

Solution(By Examveda Team)

Operating leverage measures a company’s fixed costs as a percentage of its total costs. It is used to evaluate the break-even point of a business, as well as the likely profit levels on individual sales.

This Question Belongs to Commerce >> Financial Management

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