Economies of Scale Can Occur as a Result of Which

question 64

Multiple Choice

Economies of scale can occur as a result of which of the following?

• A) increasing marginal returns as the firm increases its size
• B) lower fixed cost as the firm increases its size
• C) management difficulties as the firm increases its size
• D) greater specialization of labor and capital as the firm increases its size
• E) increased total cost when the firm increases its size

Prepare journal entries for transactions involving payroll, including deductions, taxes, and net pay.

Recognize the presentation and disclosure requirements for current liabilities under IFRS and GAAP.

Understand provisions and warranties, and how they impact financial statements.

Understand how to compute various financial metrics and their significance, such as working capital and current ratio.

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Definitions:

Single Life Annuity

A financial product that provides a stream of payments to an individual for their lifetime, ceasing upon their death.

Annuity Contract

A financial agreement between an individual and an insurance company where the individual makes a lump-sum payment or series of payments in exchange for regular disbursements starting either immediately or at some point in the future.

Expected Return

Expected return is a financial term representing the average of all possible returns for a given investment, factoring in the likelihood of each outcome.

Single Life Annuity

A type of annuity that provides payments for the life of the annuitant only and ends upon the annuitant's death.