OPERATIONAL GEARING Definition

Bookmark and Share

OPERATIONAL GEARING is the higher the proportion of fixed costs relative to variable operating costs, the higher the operational gearing. This results in greater business risk. A retailer has high fixed costs relative to variable costs, so has a lot of business risk. See GEARING and FINANCIAL GEARING.

Learn new Accounting Terms

OFFER PRICE see ASK PRICE.

FICTITIOUS ASSET is debit balance included on balance sheets as assets that do not conform to the definition of an asset. Intentional includes of assets known to be fictitious assets may be ruled as fraud.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.