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Operating leverage helps in analysis of: ? (a) Business Risk,(b) Financing Risk,(c) Production Risk,(d) Credit Risk

Accounting Financial Accounting Financial Analysis Financial Management
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Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2014/10/21
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georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

Operating pressure of the dangers related to production Risk

(c) Production Risk

Basit Ali
by Basit Ali , Director of Engineering , Laverda Suites & Villas / Blue Bay Resorts

Option C

Zubair Jahangir
by Zubair Jahangir , Cost Accountant , Rotana Hotels

Agree with all answers C) Production Risk

Ayman Esa Mustafa Farrag
by Ayman Esa Mustafa Farrag , مدير مالي , شركة الصفوف

C is the correct 

Mohammed Salim Allana
by Mohammed Salim Allana , Compliance and Assurance Manager , United Arab Bank

c, Production risk, being its evaluation is based on the production cost (fixed/variable), gross margin and varies drastically with the amount of sales.

Anayatullah Tahir
by Anayatullah Tahir , Accounting Consultant , Various

Operating Leverage is related to Business Risk

Ahmed Abd Alwahab Awad Ibrahim
by Ahmed Abd Alwahab Awad Ibrahim , Chief Accounting , ICCDP

(c) Production Risk,

Mohamed Esam Mohamed Kamel
by Mohamed Esam Mohamed Kamel , Financial Analyst , Egyptian Water & Wastewater Regulatory Agency (EWRA)

Answer (C)

Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

C

 

Deleted user
by Deleted user

a) business risk. Because the higher the operating average the higher the operating profit/loss in case of increase/decrease in revenues.

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