Managers can influence the amount of fixed and variable costs in a firm through decisions about ________.
A) product attributes
B) capacity level
C) amount of high technology equipment used for manufacturing products
D) all of the above

Question

Quizplus · Accepted Answer

All of the above factors can have an impact on the amount of fixed and variable costs in a firm. Product attributes can influence the cost of raw materials, labor, and production equipment needed, which can impact both fixed and variable costs. Capacity level can impact fixed costs, as increasing capacity may require additional investment in buildings or equipment. High technology equipment can also affect fixed costs, as the cost of purchasing and maintaining such equipment may be relatively high. Therefore, all of these factors are important considerations for managers when trying to influence the cost structure of their firm.

Managers Can Influence the Amount of Fixed and Variable Costs