Economies of Scale Are Said to Exist When Inputs Are

question 79

Multiple Choice

Economies of scale are said to exist when inputs are increased by some percentage and output increases by a(n) __________ percentage, causing unit costs to __________.

• A)greater; fall
• B)smaller; fall
• C)greater; rise
• D)smaller; rise
• E)equal; fall

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Definitions:

Sarbanes-Oxley Act

U.S. legislation enacted in 2002, aimed at protecting investors from fraudulent accounting activities by corporations.

Internal Control

The policies and procedures used to safeguard assets, ensure accurate business information, and ensure compliance with laws and regulations.

Ratios

Quantitative measures that are used to assess the financial health, performance, and condition of a business by comparing two pieces of financial data.

Analytical Measures

Tools or metrics used to evaluate, understand, and improve business performance or financial health.