Which of the Following Statements Is True

question 197

Multiple Choice

Which of the following statements is true?

• A) Managers can lower operating risk by changing fixed costs to variable costs in the long-term.
• B) Managers can lower operating risk by changing variable costs to fixed costs in the long-term.
• C) Managers can lower operating risk by reducing the selling price and increasing volume.
• D) Managers can lower operating risk by increasing the selling price and reducing volume.

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Definitions:

Entertainment Tax

A tax imposed on services related to entertainment, such as movie tickets, shows, and sporting events, typically to raise revenue for local or national governments.

Streaming Movies

The process of watching films over the internet without downloading them, provided by various online platforms.

Movie Tickets

Small documents or electronic codes that grant the holder access to view a film in a cinema.

Economic Upturn

A period of economic improvement characterized by higher levels of production, employment, and income.