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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › About operating gearing
Is there anything different from operating gearing and opertional gearing? I thought they’re the same thing, but FM BPP-kit P276 Q7 says opertional gearing= contribution/EBIT while PM BPP-kit P413 Q15 says operating gearing=fixed costs/ variable costs.
There is no difference and there is not standard way of measuring operating gearing. Unless a question specifies how it is to be measured then either is fine (and the marks are more for the discussion).