Adam Smith Used a Famous Example of What Type of Firm

question 283

Multiple Choice

Adam Smith used a famous example of what type of firm to illustrate economies of scale?

• A)Apple
• B)a pin factory
• C)a lumber mill
• D)a British university

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Definitions:

Spending Variance

The difference between the actual amount spent and the budgeted or standard amount expected to be spent.

Power Cost

The expense associated with the consumption of electrical power used in the operations of a business or manufacturing process.

Materials Quantity Variance

The difference between the actual amount of materials used in production and the standard amount expected to be used, multiplied by the standard cost per unit.

Raw Materials Price

The cost of raw materials required in the manufacturing process, a critical factor in the overall production cost and pricing strategy.