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A petty cash fund was established with a $400 balance.It currently has cash of $9 and petty cash tickets as shown below. The journal entry to replenish the account would be which of the following:
Constant Returns to Scale
A situation in which increasing the amount of inputs results in a proportional increase in outputs.
Diseconomies of Scale
A situation in which production costs increase as a firm’s output increases, leading to decreased efficiency.
Decreasing Returns to Scale
Decreasing Returns to Scale occurs when a firm increases all inputs by a certain proportion, but the output increases by a smaller proportion, indicating reduced efficiency.
Average Costs
The total cost of production divided by the number of units produced, often used to assess efficiency and profitability.
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