To Bridge the Gap Between a Changing Business Environment and the Guidance

question 34

Essay

To bridge the gap between a changing business environment and the guidance that was then available,the IIA developed a Professional Practices Framework.This framework consists of two broad categories of guidance.List these categories of guidance and what they include.

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Definitions:

Economies of Scope

Economies of scope occur when it is more cost-effective for a company to produce two or more products together rather than separately.

Cost of Producing

The total expenditure incurred in manufacturing a product or providing a service, including materials, labor, and overheads.

Economies of Scope

Cost advantages that a business obtains through the diversification of its production by producing multiple products from joint inputs.

Economies of Scale

Businesses gain financial benefits from their size of operation, as the cost for each unit of output typically reduces with the expansion of scale.