Economies of Scope and Economies of Scale Both Relate to Lower

question 37

Multiple Choice

Economies of scope and economies of scale both relate to lower average cost but

• A)economies of scale refer to cost-advantage from higher volume of a single product.
• B)economies of scope refer to cost-advantage from spreading a common cost over multiple products.
• C)a and b.
• D)none of the above.

Describe how organisational structures support or hinder innovation.

Understand the relationship between creativity, innovation, and organisational change.

Analyse the nature and impact of change within contemporary businesses.

Outline different types of organisational change and their objectives.

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Definitions:

Balance Sheet

A financial statement that provides a snapshot of a company's financial position, including assets, liabilities, and shareholders' equity at a specific point in time.

Gross Profit Method

An inventory estimation technique that uses the historical gross profit margin to estimate the cost of goods sold and ending inventory.

Physically Counting

The manual process of counting inventory items one by one to verify the quantity on hand.

Current Assets

Assets that are expected to be converted into cash within one year or one business cycle.