Final answer:
The question whether more variable costs and fewer fixed costs are a trend among most companies can't be answered with a simple true or false. It varies by industry, business model, and individual company circumstances. Some businesses may benefit from such a cost structure, while others may have different economic considerations.
Step-by-step explanation:
The trend in most companies regarding costs can vary widely, depending on numerous factors, including industry type, company strategy, and market conditions. Some companies might emphasize having more variable costs because this provides greater flexibility to adapt to changes in demand without committing to high fixed costs. Others, with high fixed costs, can achieve economies of scale but may struggle with changes in demand. For example, an online company providing medical advice may have high initial fixed costs to set up the website and infrastructure, but once operational, the incremental variable costs of serving additional users can be quite low. Conversely, a seasonal service company, such as leaf raking or snow shoveling, may have very low fixed costs but might see higher variable costs in relation to the number of customers served. Firms with heavy machinery for manufacturing may incur low variable costs at low levels of production, but face sharply increasing variable costs as output increases due to the need for maintenance and repairs.