If a Company Shifts Its Cost Structure by Decreasing Fixed

question 108

True/False

If a company shifts its cost structure by decreasing fixed costs and increasing variable costs,it will lower both the level of risk and its potential for profits.

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Definitions:

Definition

A precise explanation of the meaning of a word or phrase.

Clarification

The process of making a statement or situation less confused and more comprehensible.

Restraining Force

Factors or conditions that resist or oppose the progress, change, or movement within an organization or system.

Driving Force

An element or factor that propels or motivates individuals or groups towards a particular direction or goal.