Activities that change the distribution of a firm's fixed and variable cost structures, such as outsourcing, will affect a firm's DOL. True or False: This statement accurately describes a firm's DOL. False True Points: 1 / 1 Explanation: Close Explanation 4 Activities that change the amount and type of fixed and variable costs, such as the decision to switch from self-manufactured to outsourced production processes, will have a significant effect on the firm's DOL. When a firm outsources its production process, it can reduce its fixed operating costs, which will reduce its DOL. Try Another Version Continue