Examlex
Answer the following questions using the information below:
Pilbara Co Pty Ltd expects to sell 6000 ceramic vases for $20 each.Direct materials costs are $2,direct manufacturing labour is $10,and manufacturing overhead is $3 per vase.The following inventory levels apply to 2017:
-How many ceramic vases need to be produced in 2018?
Economies of Scale
The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.
Diseconomies of Scale
Increases in cost per unit when output is expanded, often due to inefficiencies arising from becoming too large.
Certified Public Accountants
Professionals who have passed the CPA examination and met all other state certification requirements, authorized to provide accounting services to the public.
Diseconomies of Scale
A situation where, as a firm increases its production, the costs per unit increase.
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