Changing a company's cost structure may affect

Question

Quizplus · Accepted Answer

Changing a company's cost structure affects both operating leverage and behavioral implications for employees. Operating leverage is impacted because changing the cost structure could alter the fixed and variable costs of the company, which in turn affects the break-even point and profitability. Behavioral implications for employees can also be affected because changes in cost structure may lead to layoffs, pay cuts, and changes in job responsibilities, which can impact morale and motivation.

Changing a Company's Cost Structure May Affect