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.

Name: 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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Question

Quizplus · Accepted Answer

Decreasing fixed costs reduces financial risk, but increasing variable costs can limit profit margins, thus lowering potential profits.

If a Company Shifts Its Cost Structure by Decreasing Fixed