The Larger the Firm,the Lower the Cost Per Unit

question 10

Multiple Choice

The larger the firm,the lower the cost per unit. This is a principle of:

• A)Gains from trade
• B)Product differentiation
• C)Abandoned product ranges
• D)Imperfect competition
• E)Economies of scale

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Definitions:

AASB 136

The Australian Accounting Standards Board standard related to the impairment of assets, requiring testing for impairment to ensure asset values are not overstated.

Impairment Losses

Financial write-downs recognized when the carrying amount of an asset exceeds its recoverable amount, indicating that the asset has suffered a decline in value that is not recoverable.

Accumulated Impairment

The total sum of impairment losses recognized on an asset, reducing its carrying amount on the balance sheet.

Impairment Losses

Impairment losses are accounted for when the carrying value of an asset exceeds its recoverable amount, indicating that the asset is not expected to generate sufficient future economic benefits.