Managers should always minimize the fixed costs in their organisation as fixed costs are incurred regardless of sales volume.

Question

Quizplus · Accepted Answer

While minimizing fixed costs can improve efficiency, it's not always the best strategy. Fixed costs, such as rent and salaries, can contribute to the stability and quality of operations, and sometimes investing more in fixed costs can lead to greater scalability and competitive advantage.

Managers Should Always Minimize the Fixed Costs in Their Organisation