The More the Cost Base Is Composed of Fixed or Indirect

question 108

True/False

The more the cost base is composed of fixed or indirect costs,the more easy it is for managers to use cost reduction strategies to protect the organization's profitability in response to decreases in demand for products and services.

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Definitions:

Personal Truck

A privately-owned motor vehicle, used for personal transportation rather than for business or commercial purposes.

Equipment

Equipment encompasses the tools, machinery, devices, or any physical items required for the performance of specific tasks or functions in various fields.

Revenue

The consolidated income from the sale of goods or services that constitute the backbone of a company's operational efforts.

Revenue Account

A Revenue Account tracks the income generated from a company’s primary operations, such as sales of goods or provision of services.