As manufacturing companies become more automated, their cost structure will change so that:

A) variable costs increase, fixed costs decrease.
B) variable costs decrease, fixed costs decrease.
C) variable costs decrease, fixed costs increase.
D) there is no change in the ratio of variable to fixed costs.

Automated

Refers to a method or process completed with minimal human intervention, often using digital or mechanical systems.

Cost Structure

The composition and proportion of fixed and variable costs that a business incurs, influencing its profitability and pricing strategies.

Variable Costs

Expenses that adjust in proportion to the amount of production or the intensity of business operations.