What do you mean by Leverage?
Answers were Sorted based on User's Feedback
Answer / pankaj kumar
Leverage is results from the fix financial operating
expenses in the firms income. The fix operating expenses
falls into the three categories,
1) Fix cost
2) Variable cost
3) Semi-variable cost
| Is This Answer Correct ? | 7 Yes | 7 No |
Answer / rudradeva
PRESENCE OF FIXED COST IN A FIRM CAPITAL STRUCTURE
| Is This Answer Correct ? | 1 Yes | 1 No |
Answer / vikash
Leaverage is the tendency
of the oprating profit to
vary disproportionately
with sales
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / snehal
employment of an assets or funds for which the firm
pays a fixed costs and fixed retuns.
| Is This Answer Correct ? | 3 Yes | 4 No |
There are various types of fixed cost involved in business.
For example payment of Monthly Rent , Salary of permanent
employees etc. Fixed cost relating to operating cost of the
business give rise to operating leverage. The total cost
consist of variable & fixed cost. Variable cost increases
with increase in no of units produced/sold where as fixed
cost decreases with increase in no of units produced/sold
upto a certain capacity level.
Similarly the effect of such increase & decrease in sales
over profitability largely depends on the % of variable &
fixed cost in total cost.For exp. if in total cost variable
cost % is more as compared to fixed cost than in case of
increase in sales, increase in profit due to such increase
in sales will be at a greater degree due to the fact that
with each increased unit of sale , variable cost per unit
remain the same but total fixed cost has decreased in terms
of per unit paving the way for magnifying effect over
profitability due to fixed cost factor.
Similarly reverse will happen in case if in total cost
variable cost % is less as compared to fixed cost.
| Is This Answer Correct ? | 0 Yes | 1 No |
Answered but misspelled pl correct THE MINIMUM NUMBER OF SHARE HOLDERS IN A PUBLIC LTD CO. (ANS.NEVSE)
What is meant by consignment
what is purchase tax in rajasthan.
You are given the following information in respect of a company: Fixed cost –Rs.13,000 Variable cost –Rs.14,000 Net profit –Rs.3,000 Net sales-Rs.30,000 Find out: a>BEP b>The profit for sales volume of Rs.50,000 c>The volume of sales to make a profit of Rs.10,000
please specify some books name in preparing a bank exam apttirutude questions
what is bank reconcilation?
The Trial Balance of M/S Ram & Co,Shows chosing stock of Rs,30000. It will be recorded in: - .................. (a) Trading A/c; (b) Profit & Loss A/c; (c) Balance Sheet; (d) Both (a) & (b)
How can a Society be converted to a Private Limited Company in the Real Estate Industry and at the same time have the least tax liability upon it's profits earned during the financial year closing
How many types of banking accounts? tell me about that
20 Answers Andhra Bank, Bank of Baroda, Canara Bank, Chartered Accountant, Indian Bank,
What do you mean by Mutual Funds ? Types
5 Answers BNP Paribas, Capital IQ,
what is the difference between accrual and provision
if a person join company on 01-04-04. after 5 year he is resigned on 31-03-09 and date of leaving is 14-04-09. Is he is on under gratuity payable or not? he is completed 5 years on 31-03-09. what is basis on calcultion on final settlement is date of resignation or date of leaving whcih is on 14-04-09.