In Order to Take Advantage of Economies of Scale,large Businesses

question 103

Multiple Choice

In order to take advantage of economies of scale,large businesses usually

• A) Devote resources to produce selected quantities of products
• B) Devote resources to produce large quantities of products
• C) Devote resources that are committed for only short time periods
• D) Devote resources that are able to quickly respond to a changing market

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Definitions:

Growth

Refers to the increase in size, value, or importance of an entity over time.

Sales

The trade of goods or services for financial compensation, which serves as the fundamental revenue generator for the majority of corporations.

Finished Goods Inventory

The stock of completed products ready for sale, representing one of the final stages in the production process.

Sales Forecast

An estimate of future sales, often based on historical data, current market trends, and forward-looking economic indicators, used for planning and decision-making purposes.