Which of the Following Occurs If the Costs of Joint

question 90

Multiple Choice

Which of the following occurs if the costs of joint production of FI services are higher than they would be if they were produced independently?

• A)Economies of scale.
• B)Diseconomies of scale.
• C)Economies of scope.
• D)Diseconomies of scope.
• E)Constant returns to scale.

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Definitions:

Excess (Deficiency)

The difference between what was budgeted or expected in financial projections and the actual amount received or spent, indicating a surplus or shortfall.

Master Budget

A comprehensive financial planning document that consolidates all of an organization's budgets for various departments or activities.

Budgeted Selling Price

The projected price at which a product is expected to be sold, factored into business planning and budgeting processes.

Raw Materials

Basic materials and components used at the beginning of the production process to manufacture goods.