________ Is a Notion That Costs Fall with Cumulative Production

question 50

Multiple Choice

________ is a notion that costs fall with cumulative production or delivery of a service and that,using the first few years of a product's life as a yardstick,the continued decline in costs is predictable.

• A)Benchmarking
• B)Experience curve
• C)Economies of scale
• D)Reintermediation

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Definitions:

Periodic Inventory System

An inventory accounting method where inventory levels and cost of goods sold are calculated at set intervals, such as monthly or yearly.

Closing Entries

The journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent ones, preparing the books for the next period.

Retained Earnings

Profits that a company keeps to use within the business after dividends have been paid out to shareholders.

Fiscal Year

A one-year period used for financial reporting and budgeting, which may or may not align with the calendar year.