Question

g cost structure is degined on the relative proportion of fixed and variable cost in an organization if the company increase the proportion of variable costs relative to fixed costs

True/False

Answer 1

Answer:

True

Explanation:

Cost structure involves all the expenses that a company will incur while operating business model, which it is typically composed of fixed and variable costs. Fixed costs are static with increases or decreases in units of production capacity, while variable costs are dependent. Cost structure is the relative proportion of fixed and variable costs within a company.