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Which cost system is suitable for a large scale business having small percentage of profit? A) fixed cost (b) Variable cost?

note: answer with a suitable reason.

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Question added by Muhammad Zia Ullah , Account Officer , S.M Food Makers (pvt) ltd
Date Posted: 2013/07/04
Arpit Kapoor
by Arpit Kapoor , Operations Analyst , JP Morgan Chase

Keeping the option to Fixed and Variable, I would say, the industry does matter. But more importantly, I think Fixed is more valid in large companies then variable.

Muhammad Asif Jajja
by Muhammad Asif Jajja , Accountant , Pakistan Veterinary Medical Council

A good entrepreneur has time-tested instincts, but a great entrepreneur knows analysis and instinct are the keys to smart business decisions.
C.V.P (Cost, Volume, and Profit) Analysis will help to make decision.