Question

In your view, is a retailing firm's shrink likely to contribute most to its fixed costs or variable costs? Explain your reasoning.

Short answer

a retailing firm's shrink likely to contribute most to its variable costs

Step-by-step solution

Given Information

For a developing business, qualification among fixed and variable expenses is fundamental. For instance, assuming the firm is wanting to decrease the expense by chopping down its size of tasks.

Explanation

This will assistant affect the proper expense and will just diminish the variable expense.

In this manner, the contract is probably going to influence the variable expense of the firm. Further, we can legitimize that the variable expense is the expense which increments or diminishes with the degree of the result of a firm. Assuming that a firm can't take care of its variable expense, it causes a misfortune in the short run.