The More the Cost Base Is Composed of Fixed or Indirect

question 109

True/False

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

Conditioned Stimulus

In classical conditioning, a previously neutral stimulus that, after becoming associated with the unconditioned stimulus, triggers a conditioned response.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention, until it is paired with an unconditioned stimulus.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without any prior learning.