The Ability to Spread Fixed Costs Over a Large Volume

question 47

True/False

The ability to spread fixed costs over a large volume is a source of economies of scale.

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Definitions:

Credit Manager

A professional responsible for overseeing a company's credit granting process and managing the credit risks and policies.

Accounts Receivable

Payments pending from customers to a business for items or services that have been supplied but not yet remitted.

Cash Manager

An individual or team responsible for managing a company's cash flow to meet operational needs and investment goals.

Cash Cycle

The duration of time it takes a company to convert its investments in inventory and other resources into cash flows from sales.