Which of the Following Is NOT a Reason Why There

question 49

Multiple Choice

Which of the following is NOT a reason why there are gains to specialization?

• A)It eliminates many of the costs of switching from one task to another.
• B)It further improves skills through experience and practice.
• C)It increases the amount productive resources in the economy.
• D)It allows individuals to concentrate on the activities in which they have a comparative advantage.

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Definitions:

Purchase Returns

Transactions where buyers return previously purchased merchandise to the seller, resulting in a reduction of cost of goods sold for the seller and a refund or credit for the buyer.

Freight-In

The shipping cost for merchandise transported into a company's inventory, typically considered part of the cost of goods sold.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period detailing revenues, expenses, profits, and losses.

Comparability

The quality that allows users to analyze and recognize similarities and differences between two or more items of financial information.