Which of the following is a typical cost structure for home builders?
A)high fixed costs relative to variable costs.
B)high variable costs relative to fixed costs.
C)high profits relative to total costs.
D)None of the answers is correct.

Question

Quizplus · Accepted Answer

Home builders typically have high variable costs relative to fixed costs because the cost of materials and labor can vary significantly from one project to another, while fixed costs such as office rent or salaries for permanent staff are relatively stable.

Which of the Following Is a Typical Cost Structure for Home