What is operating leverage the relative mix of?
A)revenues earned and manufacturing costs
B)fixed and variable costs
C)high-volume and low-volume products
D)manufacturing costs and period costs

Question

Quizplus · Accepted Answer

Operating leverage refers to the relationship between fixed and variable costs in a company's cost structure. A company with high fixed costs and low variable costs will have high operating leverage, while a company with low fixed costs and high variable costs will have low operating leverage. Therefore, operating leverage is the relative mix of fixed and variable costs.

What Is Operating Leverage the Relative Mix Of