Which of the Following Is NOT a Reason Why a Firm

question 163

Multiple Choice

Which of the following is NOT a reason why a firm may experience economies of scale?

• A) Productive specialization
• B) Dimensional factors
• C) Improved productive equipment
• D) Increased levels of management

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Definitions:

Doubtful Debts Expense

An accounting concept referring to the provision a company makes to account for amounts it expects will not be collected from debtors.

Depreciation Expense

An accounting method that allocates the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Long-Service Leave

An employee benefit offering paid leave to those who have been employed by the same company for a long period of time, typically recognized in countries like Australia.

Accounting Policies

The exclusive doctrines, fundamentals, customs, laws, and strategies adopted by a firm in assembling and revealing its financial documentation.