The cost structureof an organization refers to the which of the following?
A)proportion of fixed and variable costs to total costs.
B)proportion of total revenue to total costs.
C)proportion of profits to total costs.
D)None of the answers is correct.

Question

Quizplus · Accepted Answer

Cost structure refers to the proportion of fixed costs and variable costs to total costs. This means that it looks at how much of the costs are fixed (do not change with changes in output or sales) and how much are variable (change with changes in output or sales). The other options presented (B and C) are not correct as they do not refer to the structure of costs within the organization.

The Cost Structureof an Organization Refers to the Which of the Following