Choose an organization that has a high fixed cost and low variable cost balance to run its operations. Discuss the balance of fixed and variable costs for the organization. How can the organization use technology to change this balance for an advantage?© BrainMass Inc. brainmass.com October 25, 2018, 6:33 am ad1c9bdddf
An example of such organization will be software companies like Microsoft, Adobe or Mcafee that have high fixed costs but lower variable costs as most of the software companies have to spend on fixed costs like salary of employees for R&D, customer support and development related functions. Once fixed costs are ...
This solution identifies software companies as having high fixed costs and low variable costs. This solution is 191 words.
Apply economic cost concepts in making business decisions
Businesses often decide between using automation and labor in production. An automotive environment may have high fixed costs and low variable costs, and an industry that utilizes manual labor for production will have low fixed costs and high variable costs. How would you describe the balance between the costs of automation, or fixed costs, and the costs of labor, or variable costs? How has technology changed the balance between automation and labor? What type of industry benefits the most from technological innovation?View Full Posting Details