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

A) financial leverage.
B) operating leverage.
C) fixed cost leverage.
D) operating leverage AND fixed cost leverage.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the level of fixed versus variable costs in a company's operating structure.

Cost Structure

The composition of a company's costs, including fixed and variable costs, that influence its pricing and profitability.

Fixed Costs

Expenses that remain constant regardless of the level of production or business activity.