- This topic has 1 reply, 2 voices, and was last updated 9 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
There is no standard measure of operating gearing. But is this formula for calculating operating gearing correct?
Sales-Variable Costs/PBIT
They had used this in one of the exam questions
Yes – the examiner has used this once (contribution / PBIT) in a MCQ, and so best is to learn this measure.
(The only time he has asked calculations before was in a long-form question and in is answer he stated that there is no standard measure and allowed several different measures.)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.