A Firm That Wants to Achieve Economies of Scale Could

question 245

Multiple Choice

A firm that wants to achieve economies of scale could do so by

• A)assigning limited tasks to its employees, so they can master those tasks.
• B)employing a smaller number of workers.
• C)producing a smaller quantity of output.
• D)producing an output level higher than the efficient scale.

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Definitions:

Overapplied

A situation where the overhead costs applied to products or services exceed the actual overhead costs incurred.

Adjusted Cost of Goods Sold

The cost of goods sold after adjustments for changes in inventory levels and other factors affecting cost of goods sold.

Year

A period of 365 or 366 days, in the Gregorian Calendar, divided into 12 months, used for calculating time.

Net Operating Income

The total profit of a business after operating expenses are subtracted from gross profit but before taxes and interest are deducted.