All of the Following Are Reasons for Economies of Scale

question 135

Multiple Choice

All of the following are reasons for economies of scale EXCEPT

• A) diminishing marginal product.
• B) specialization.
• C) dimensional factors.
• D) improved production equipment.

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Definitions:

Planning

The process of creating strategies and outlining tasks to achieve a specific goal.

Directing

The process of guiding, leading, and managing employees in an organization to achieve its objectives.

Controlling

The process of monitoring, comparing, and correcting activities to meet organizational goals and objectives, often part of managerial accounting.

Work in Process Inventory

Inventory that includes all the materials, labor, and overhead costs for products that are in the process of being manufactured but are not yet complete.