Managers and management accountants distinguish fixed from variable costs and then evaluate how the level of fixed costs and variable costs they choose will affect the risk-return tradeoff.

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Managers and management accountants do distinguish fixed from variable costs and evaluate how the mix of fixed and variable costs affects the risk-return tradeoff. This analysis helps them to make decisions about cost structures, pricing, product mix, and investment opportunities.

Managers and Management Accountants Distinguish Fixed from Variable Costs and Then