Which of the Following Is Not a Potential Source of Diseconomies

question 92

Multiple Choice

Which of the following is not a potential source of diseconomies of scale?

• A) physical limits to efficient size
• B) worker de-motivation
• C) distance to markets and suppliers
• D) learning-curve economies

Grasp the implications of changes in accounting principles and their disclosure requirements.

Understand the concept and calculation of the break-even point in units and dollar sales.

Understand and calculate the degree of operating leverage for given sales data.

Calculate and interpret the contribution margin and the contribution margin ratio.

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Definitions:

Income Statement Approach

The Income Statement Approach is a method used in accounting to create the income statement by focusing on revenues, expenses, and income to determine the net profit or loss for a period.

Direct Write Off Method

A method to account for bad debts by directly writing off specific invoices determined to be uncollectible.

Balance Sheet Approach

A method for valuing accounts that focuses on determining net realizable values for balance sheet items.

Credit Sales

Sales transactions where the payment is deferred, allowing the buyer to purchase goods or services on credit.