Companies That Carry a High Level of Fixed Costs Relative

Multiple Choice

Companies that carry a high level of fixed costs relative to variable costs are considered to have

A) a greater risk than companies with a high level of variable costs relative to fixed costs.
B) a lesser risk than companies with a high level of variable costs relative to fixed costs.
C) a greater amount of period costs than product costs.
D) either a greater amount of product costs than period costs.