To Reduce the Risk Inherent in ______________________________ a Company Should

question 66

Short Answer

To reduce the risk inherent in ______________________________ a company should strive for a high proportion of variable costs in its cost structure.
Answer:

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Definitions:

Normal Balance

The side (debit or credit) on which increases to an account are recorded, depending on the type of account.

Liability Account

An accounting record that represents a company's legal debts or obligations that arise during the course of business operations.

Revenue Account

An account that tracks the income generated from a company's primary operations.

Asset Account

An account on a balance sheet representing the resources owned by a company, with future economic benefit.