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.

Question

Quizplus · Accepted Answer

Fixed or indirect costs do not change with the level of production or sales, making it harder to reduce costs quickly in response to decreased demand.

The More the Cost Base Is Composed of Fixed or Indirect