Crumpton Industries Reduced Its Unit Costs When It Expanded Its

question 67

Multiple Choice

Crumpton Industries reduced its unit costs when it expanded its productive capacity, indicating that it has benefited from

• A) experience curve efficiencies.
• B) learning effects.
• C) economies of scale.
• D) economies of scope.

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Definitions:

Financing Provided

Funds supplied to businesses or individuals for the purpose of investing, expansion, or operating expenses that are expected to be repaid in the future.

Retained Earnings

The segment of net profits that are not distributed as dividends, instead kept within the company for reinvestment in its main operations or for debt repayment.

Current Asset

A slightly different term for assets likely to be used or turned into cash within one fiscal year or operating cycle, emphasizing liquidity.

Land

An asset representing the earth's surface that a company owns, used for operations, development, or investment.