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I think most small companies try very hard to operate in a manner where its cost structure is mostly variable costs and has hardly any fixed costs.


I think most small companies try very hard to operate in a manner where its cost structure is mostly variable costs and has hardly any fixed costs. As they grow in size, they might just then prefer fixed costs.

When I say fixed costs, I think of depreciation from fixed assets, which means greater capital intensity.

identify $1 billion + businesses that you believe are not very capital intensive? Support your reasons. (can be 4-5 sentences)

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Dear student! As you said i have given the solution promptly! I have... View the full answer

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Solution:Variable cost (e.g. material per unit etc.) and fixed cost (e.g. depreciation etc.) are the most
fundamental categories of costs, variable cost is the cost which is incurred on the per...

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