The More the Cost Base Is Composed of Fixed or Indirect

question 66

True/False

The more the cost base is composed of fixed or indirect costs,the more difficult 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.

---

Definitions:

Varying Technologies

A range of technological tools or systems that differ in their application, purpose, or functionality.

Authentic Intention

A genuine and true purpose or aim behind an action, reflecting an individual's sincerity and honesty in their objectives or desires.

Circuitous

Not direct or straightforward; involving a longer route or process than necessary.

Recursive

A process or function that calls itself directly or indirectly, commonly used in computer programming and mathematics.