An Industry That Realizes Such Large Economies of Scale in Producing

question 285

Multiple Choice

An industry that realizes such large economies of scale in producing its product that single-firm production of that good or service is most efficient is called a(n) ________ monopoly.

• A) fixed cost
• B) economies of scale
• C) patent
• D) natural

Understand the separation of standard costs into two components for detailed variance analysis.

Recognize the need for updating standard costs in response to changes in production specifications, labor contracts, and material costs.

Understand the concept and calculation of direct labor variances, including rate and time variances.

Identify and calculate direct materials variances, including price and quantity variances.

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