Economies of Scale Arise as Fixed Development or Production Costs

question 19

True/False

Economies of scale arise as fixed development or production costs are spread over a larger output.

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Definitions:

Accounting Period

The time span during which financial activities are recorded and reported, commonly a fiscal year or quarter.

Expense Accounts

Accounting categories used to track money spent or costs incurred in a company’s operations.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate revenue and expenses to the proper period.