________ refers to the decline in per unit product costs as the absolute volume of production per period increases
A) Economies of scale
B) Economies of scope
C) Diseconomies of scale
D) Diseconomies of scope
Answer: A) Economies of scale
You might also like to view...
On January 1, 2016, Reynolda Co leased equipment by signing a five-year lease that required five payments of $30,000 due on January 1 of each year with the first payment due January 1, 2016. The equipment remains the property of the lessor at the end of the lease and Reynolda does not guarantee any residual value. Using a 10% cost of capital, Reynolda capitalized the lease on January 1, 2016, in
the amount of $125,096. What is the amount of current portion of the lease obligation Reynolda should report on the December 31, 2017, balance sheet? A) $7,461 B) $20,490 C) $22,539 D) $30,000
Management may feel pressure to maintain debt covenants, which is a deterrent to fraud
a. True b. False Indicate whether the statement is true or false
When calculating free cash flows to common equity shareholders, financing activities do not include:
a. Debt cash flows b. Adjustments for capital expenditures c. Adjustments for Preferred stock cash flows d. Financial asset cash flows
HSH is a manufacturer of components for a major automotive producer. In 2012, HSH produced 12,000 units. In 2013, the company produced 14,000 units. HSH estimated that it spent $1.5 million to produce the units in 2012 and $1.7 million to produce the units in 2013. What was HSH’s labor productivity growth rate from 2012 to 2013?
a. 2% b. -2% c. -2.9% d. 2.9%