A Minimum Efficient Plant Size Is

question 11

Multiple Choice

A minimum efficient plant size is:

• A)The minimal size of a plant that achieves an equilibrium between fixed and variable costs
• B)The starting point in terms of output volume for meeting market price at a minimum profit
• C)The minimum size of a plant that acquires the largest market share
• D)The minimum size of a plant that is required for efficient R&D

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Definitions:

Inventory Account

Inventory Account is an asset account on the balance sheet that reports the value of a company's inventory - raw materials, work-in-process, and finished goods.

Factory Overhead

Manufacturing costs that are not raw material or direct labor costs.

Raw Materials

The basic materials from which products are manufactured or made.

Corporate Headquarters

The main office or center of operations for a corporation, where key managerial and administrative activities are conducted.