Any business that operates at less than capacity will have smaller fixed costs than variable costs.

Name: Any business that operates at less than capacity will have smaller fixed costs than variable costs.
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Question

Quizplus · Accepted Answer

Fixed costs do not vary with the level of production or sales, whereas variable costs do. Operating below capacity affects the utilization of variable costs more directly than fixed costs, which remain constant regardless of production levels.

Any Business That Operates at Less Than Capacity Will Have