Companies Should Reduce Fixed Costs Whenever Possible During Times of Falling

question 136

True/False

Companies should reduce fixed costs whenever possible during times of falling profits.

---

Definitions:

Culture of Poverty

A theory suggesting that poverty creates a distinct set of values, behaviors, and attitudes that perpetuate conditions of economic disadvantage.

Accounts Receivable Subsidiary Ledger

A book or file that contains the individual records, in alphabetical order, of amounts owed by various credit customers.

Accounts Payable Journal

A ledger that records all short-term obligations or debts a company owes to suppliers and creditors.

Sales Journal

A specialized journal used to record all of a company's sales on credit.