Spreading Fixed Costs Over a Large Volume Results in a Cost-Savings

question 36

Multiple Choice

Spreading fixed costs over a large volume results in a cost-savings phenomenon referred to as:

• A)volume synergies.
• B)economies of scale.
• C)captured savings.
• D)size effects.
• E)location economies.

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Definitions:

Body Fat

A component of the body that consists of stored fat and is essential for normal physiological and metabolic functions.

Correlation

An indicator that measures the degree to which multiple variables vary in unison.

Denseness

A measure of the compactness or crowding of objects within a given area or volume.

Slope

The measure of the steepness or inclination of a line, often describing the rate of change between two variables.