The Fact That a Large Company Can Enjoy Savings from Producing

question 43

Multiple Choice

The fact that a large company can enjoy savings from producing goods in high volume that are not available to a small company is called ________.

• A) economies of scale
• B) horizontal integration
• C) vertical integration
• D) economies of scope

---

Definitions:

Accounts Receivable

Amounts due from clients to a business for goods or services that have been supplied or rendered but haven't been settled.

Accounts Payable

Amounts owed by a company to suppliers or creditors for goods and services received but not yet paid for.

Supplies

Materials and items consumed or used in the day-to-day operations of a business but not directly tied to the products manufactured.

Utilities Expense

The cost incurred by a business for basic services such as electricity, water, gas, and sewage during an accounting period.