According to Astrid, avoiding the costs of growing too large and creating waste will improve efficiency. She is referring to
Scenario: Three students—Bernardo, Astrid, and Rajiv—are discussing how to improve efficiency in a manufacturing context. Bernardo says that the company must work toward achieving lower costs per unit of production. Rajiv believes that the company should use the same resources to make more related products. Astrid holds that avoiding the costs of growing too large and creating waste will improve efficiency.
A) diseconomies of scale.
B) diseconomies of scope.
C) economies of scale.
D) economies of scope.
E) economies of size.
A) diseconomies of scale.
Explanation: Diseconomies of scale are the costs of being too big. Large size creates economies of scale and scope.
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a. A good track record in research and development b. A reputation for using only high-quality inputs c. A reputation for good customer service d. All of the above
A furniture corporation manufactures two models of furniture—Standard and Deluxe. The total estimated manufacturing overhead costs are $64,300. The following estimates are available:
Standard Deluxe Direct materials cost per unit $240 $280 Direct labor cost per unit $120 $135 Number of units 250 500 The company uses direct labor costs as the base to allocate manufacturing overhead. Calculate the predetermined overhead rate. (Round your answer to two decimal places.) A) 32.15% B) 33.84% C) 190.52% D) 65.95%
Set your word processor to use ragged-right alignment, also called ____ justification.
A. left B. right C. top D. center
The cost of preferred stock is computed the same as:
A) the pre-tax cost of debt. B) an annuity. C) the after-tax cost of debt. D) a perpetuity. E) an irregular growth common stock.