If revenues are expected to decline,management should attempt to convert its variable costs into fixed costs.

Name: If revenues are expected to decline,management should attempt to convert its variable costs into fixed costs.
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Question

Quizplus · Accepted Answer

If revenues are expected to decline, it may be more beneficial for management to try to reduce costs instead of converting variable costs into fixed costs. Converting variable costs into fixed costs may lead to higher costs in the long run if revenues continue to decline.

If Revenues Are Expected to Decline,management Should Attempt to Convert