The extent to which an organization uses fixed costs in its cost structure is measured by:

Question

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The use of fixed costs in an organization's cost structure is measured by operating leverage. Operating leverage measures the relationship between fixed costs and variable costs in a company's cost structure. A high operating leverage means that a company has a high proportion of fixed costs relative to variable costs, while a low operating leverage means that there are more variable costs in the company's cost structure.

The Extent to Which an Organization Uses Fixed Costs in Its