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An Increase in fiRm Size So That Diseconomies of Scale

question 114

True/False

An increase in firm size so that diseconomies of scale are realized represents a potential gain from
an acquisition.


Definitions:

Revenue

The total income generated from normal business operations and other activities.

Direct Expense

Direct Expense is a cost that can be directly tied to the production or sale of specific goods or services.

Traceable

Refers to costs or expenses directly linked to a specific department, product, or activity, allowing for accurate financial analysis.

Department

A specialized functional area within an organization that focuses on specific operations or responsibilities.

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