Economies of Scale Refers to

question 39

Multiple Choice

Economies of scale refers to

• A) learning effects from manufacturing experience.
• B) the incremental drop in costs that results from the doubling of output.
• C) efficiencies that are most common in low-tech operations.
• D) gains from the spreading of investment across more units of production.

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Definitions:

FIFO

First-In, First-Out, an inventory valuation method where goods purchased or produced first are sold, used, or disposed of first.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, ending with the net income or loss for the period.

Holding Gain

The increase in value of an asset held over a period, not realized until the asset is sold.

LIFO

An inventory valuation method, "Last In, First Out," where the most recently produced or acquired items are recorded as sold first.