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The More the Cost Base Is Composed of Fixed or Indirect

question 75

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The more the cost base is composed of fixed or indirect costs,the more straightforward 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:

Prospects

Potential customers or clients who have been identified as fitting the target market and who may have an interest or need for a company’s product or service.

Technology

The application of scientific knowledge for practical purposes, especially in industry and the creation of tools, machines, and software to solve problems or improve existing solutions.

Avoid Duplicating

involves taking measures to prevent repetition or copying in processes, information, or products to ensure uniqueness and efficiency.

Corporate Credit Ratings

Assessments made by credit rating agencies that evaluate a corporation's ability to repay its debts.

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