________ Refers to Reductions in a Firm's Costs That Result

question 325

Multiple Choice

________ refers to reductions in a firm's costs that result from an increase in the size of an industry.

• A) Internal economies
• B) External economies
• C) Autarkial dominance
• D) Streamlining

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Definitions:

Step-Down Method

The step-down method is a cost allocation approach used in accounting, which assigns overhead costs to various departments in steps, based on specified allocation bases.

Operating Departments

The divisions within a company where the primary functions related to the production of goods or provision of services are carried out.

Direct Method

An accounting approach used to allocate service department costs directly to producing departments without considering services rendered between service departments.

First-In, First-Out

An inventory valuation method where the oldest stock is sold or used first.