BUSINESS FINANCE I Dersi Cost-Volume-Profit (CVP) Analysis soru detayı:

PAYLAŞ:

SORU:

How is the Degree of Operating Leverage (DOL) defined?


CEVAP:

The degree of operating leverage is a concept widely used to assess the operating risk of a business stemming from its cost structure. Basically, the degree of operating leverage shows how much the operating income of the business changes with a relative change in its sales. In fact it is a multiple depicting how many times the operating income of a business changes in relation to a percentage change in the sales.