should businesses with low operating leverage use the same models to manage costs that businesses with...
should businesses with low operating leverage use the same models to manage costs that businesses with a high degree of operating leverage use?
Homework Answers
Businesses with low operating leverage have a high amount of variable cost than fixed cost and companies with a high degree of operating leverage have a more fixed cost than variable cost.
So low operating leverage companies need to focus on managing variable cost and high operating leverage companies need to focus on fixed cost management.
Therefore, both businesses have to manage costs differently.
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should businesses with low operating leverage use the same
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