If a Company Reduces Its Fixed Costs,the Operating Income Will

question 211

True/False

If a company reduces its fixed costs,the operating income will increase by the same amount as the cost reduction.

---

Definitions:

Corporate Leaders

Individuals at the highest level of organizational management who are responsible for making major corporate decisions.

Terminal Cancer

A stage of cancer that is advanced and incurable, leading to the eventual death of the patient.

Annual Report

A comprehensive report on a company's activities, financial performance, and strategy, usually published at the end of the fiscal year.

Insider Trade

The buying or selling of a publicly-traded company's stock by someone with access to non-public, material information about the company.