Which of the Following Is Not a Reason for Economies

question 83

Multiple Choice

Which of the following is not a reason for economies of scale?

• A)Division of labor helps in specialization
• B)Merger of two firms
• C)Hiring larger machines which are more efficient than the smaller ones
• D)Increase in overhead expenses
• E)Research and development

Comprehend how changes in credit terms affect the cost of credit for customers.

Recognize the terms used in credit management such as receivables period and inventory turnover.

Understand the methodologies for analyzing the creditworthiness of potential customers.

Analyze the implications of switching from a cash sales policy to a credit policy in terms of cash flow, production, and financial management.

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