The cost structure of an organization is the proportion of which of the following?
A)opportunity and variable costs to total costs.
B)fixed and opportunity costs to total costs.
C)variable and opportunity costs to total costs.
D)fixed and variable costs to total costs.

Question

Quizplus · Accepted Answer

The cost structure of an organization refers to the proportion of fixed and variable costs to total costs. Fixed costs are those that do not change with the level of production, while variable costs do. Therefore, D is the best choice as it includes both fixed and variable costs.

The Cost Structure of an Organization Is the Proportion of Which