Operational gearingForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Operational gearingThis topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total) AuthorPosts May 24, 2021 at 4:27 pm #621651 Syed Ahsan AliParticipantTopics: 129Replies: 82☆☆☆Is it true that Operational gearing is used to measure the business risk of the company?It can be calculated as (Contribution / Profit before Interest & Tax)?What exactly are we looking for using this formula? May 25, 2021 at 7:45 am #621686 John MoffatKeymasterTopics: 56Replies: 53816☆☆☆☆☆No. Operating gearing is one factor that affects the riskiness of a business.As to what we are looking at, please watch my free lecture working through Chapter 13 of our free lectures notes.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In