Operating leverage: an underutilized risk management tool
Files
Accepted manuscript
Date
2019-11-15
DOI
Authors
Sabin, Gregory
Version
Accepted manuscript
OA Version
Citation
Gregory Sabin. 2019. "Operating Leverage: An underutilized risk management tool." Journal of Cost Management, Volume 33, Issue 6, pp. 37 - 44 (7).
Abstract
Operating leverage refers to the relation of a firm’s fixed to variable costs. This relation can be used to support specific business strategies, enhance growth opportunities as well as manage systematic risk. All of these aspects can impact firm value and performance. This article is intended to stimulate some additional thought on the implications of operating leverage and nudge CFO’s into more actively managing their cost structure.
Description
License
Attribution-NonCommercial-NoDerivatives 4.0 International