The extent to which an organisation uses fixed costs in its cost structure is called

Question

Quizplus · Accepted Answer

The extent to which an organization uses fixed costs in its cost structure is known as operating leverage. Financial leverage refers to the amount of debt used to finance operations. Fixed cost leverage is not a commonly used term in finance or accounting. Therefore, option D, operating leverage and fixed cost leverage, is incorrect.

The Extent to Which an Organisation Uses Fixed Costs in Its