Which of the Following Is a Suitable Description of the Term

question 49

Multiple Choice

Which of the following is a suitable description of the term 'economies of scope'?

• A) The use of several inputs to produce one common output.
• B) The ability to generate cost savings by producing more than one output with the same inputs.
• C) The ability to lower average operating costs by expanding the number of outputs.
• D) The ability to lower average operating costs by lowering the number of outputs.

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Definitions:

Warehouse

A large commercial building for storing goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc.

Land Valuation

The process of determining the present worth of a piece of land based on its highest and best use, market conditions, and other factors.

Depreciable Cost Basis

The portion of the cost of an asset that can be deducted over time for tax purposes.

Personal-Use Property

Items owned for personal enjoyment or use, such as a residence or car, that typically do not qualify for tax deductions or depreciation.