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English
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| Number of pages / Number of words: |
4 / 1006 |
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It is the most desirable mean in situations which the business is new, and economic future is unstable, as described in Block (2004). Most often, the fear of not able to reach the break even level in revenue is the primary reason that companies decide to increase the variable costs assets instead of fixed cost assets...
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As for the human resource example mentioned earlier, it would be required to hire more employees when productivity is high. Then when productivity is low, it can reduce its work-force and not having to be locked into the financing of the fixed equipment costs.
Costs can be break down into either direct cost or indirect cost...
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