The Level of Output at Which Most Plant-Level Scale Economies

question 76

Multiple Choice

The level of output at which most plant-level scale economies are exhausted is known as

• A) mass customization.
• B) break-even point.
• C) minimum efficient scale.
• D) just-in-time.
• E) lean production.

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Definitions:

Accumulated Depreciation

The total depreciation for a fixed asset that has been charged to expense since that asset was acquired and made available for use.

Retained Earnings

Accumulated net income after dividends that is reinvested in the business.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue, a key indicator of a company's financial health.

Retained Earnings

The portion of profits kept in the company rather than paid out as dividends, which can be used for investment or debt reduction.