21-114 Which of the Following Is True of X Efficiencies

question 40

Multiple Choice

21-114 Which of the following is true of X efficiencies?

• A)They result from diseconomies of scope.
• B)They are difficult to pin down in a quantitative fashion
• C)They result from diseconomies of scale.
• D)They are a direct result of significant economies of scope.
• E)They are a direct result of significant economies of scale.

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Definitions:

Long-Term Asset

Assets owned by a company that are intended for use over a long duration, typically more than one year, such as real estate, machinery, and patents.

Statement of Cash Flows

A financial report that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investing, and financing activities.

Net Increase

The amount by which something grows or rises, subtracting decreases from increases over a period of time.

Financing Activities

Transactions and events that affect long-term liabilities and equity of an organization, such as issuing stock or obtaining a loan.