Which of the Following Methods Calculates Interest on the Full

question 51

Multiple Choice

Which of the following methods calculates interest on the full amount of the original principal?

• A) Declining balance method
• B) Add-on interest method
• C) Simple interest method
• D) Adjusted balance method
• E) Average daily balance method

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Definitions:

Diseconomies Of Scope

The phenomenon where the cost of producing two or more products together is higher than producing them separately.

Economies Of Scope

cost advantages that enterprises obtain due to the efficient allocation and utilization of resources across multiple products or services.

Diseconomies Of Scope

A situation in which a company experiences increased costs as a result of increasing the variety of goods or services it produces.

Economies Of Scope

Cost advantages that enterprises obtain due to the efficient production of a wider variety of goods or services together rather than separately.