Use the Following Statements to Answer This Question

question 24

Multiple Choice

Use the following statements to answer this question:
I. The scale economies index is positive if the cost-output elasticity that is greater than one.
II. A negative scale economies index indicates the presence of diseconomies of scale.

• A) I and II are true.
• B) I is true and II is false.
• C) II is true and I is false
• D) I and II are true

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Definitions:

FOB Shipping Point

A shipping term indicating that the buyer takes responsibility for goods and their transportation costs as soon as the goods leave the seller's premises.

Goods In Transit

Merchandise or stock that has been shipped by the seller but has not yet been received by the purchaser.

FIFO Method

"First In, First Out," an inventory valuation method assuming goods first purchased or produced are the first to be sold.

Perpetual Inventory System

An inventory system that tracks merchandise in real-time, updating inventory records immediately upon purchase or sale.