Various textbooks in management accounting associate the concept of degree of operating leverage (DOL) to the ratio of fixed costs and variable costs—an index referred to as the cost structure of a firm. This view of operating leverage implies that, if two firms have different sales volumes...

Non-catastrophic weather risk is gaining importance as climate change becomes more pronounced and economic crisis forces companies to strengthen their cost control. Recent literature proposes weather derivatives as flexible weather risk mitigating tools. Only a handful of studies analysed the...