Operating Leverage Definition Operating Leverage Definition: Operating leverage is a measure of how sensitive net income is to a given percentage change in sales. It is computed by dividing the contribution margin by net income. This page only defines the term click here to read full article about operating leverage. Relevant Terms: Negative and Positive Operating Leverage Positive financial leverage Negative financial leverage Other Related Accounting Articles: Positive and Negative Operating Leverage Definition Positive Financial Leverage Definition Negative Financial Leverage Definition Degree of Operating Leverage Definition Introduction to Managerial Accounting Contribution Margin Definition Horizontal/Trend Analysis Definition Accounting Principles and Accounting Equation Accounting for Non-Trading Concerns First in First Out – FIFO Method Definition Recommended Books ! Or Download E accounting book in MS-word format for just 20 $ - Click here to Download Tweet Pin It Sana Ahmed Accounting Definitions, Cost Accounting, Managerial Accounting, Managment Accounting No Comments Home » Accounting Definitions & Cost Accounting & Managerial Accounting & Managment Accounting » Operating Leverage Definition About The Author Sana Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Save my name, email, and website in this browser for the next time I comment.