Select the correct statement from the following. a. A fixed cost structure offer
ID: 2494045 • Letter: S
Question
Select the correct statement from the following. a. A fixed cost structure offers less risk (i.e., less earnings volatility) and higher opportunity for profitability than does a variable cost structure. b. A variable cost structure offers less risk and higher opportunity for profitability than does a fixed cost structure. c. A fixed cost structure offers greater risk but higher opportunity for profitability than does a variable cost structure. d. A variable cost structure offers greater risk but higher opportunity for profitability than does a fixed cost structure
Explanation / Answer
b. A variable cost structure offers less risk and higher opportunity for profitability than does a fixed cost structure.