List different aspects of the diversified enterprise’s activities where scale economies can give rise to scope economies.
What will be an ideal response?
Scale economy obtains when an activity operates at or close to the level of optimum efficiency for
the key technology or process that underpins it. When such activities achieve optimum efficiency
because (and only because) they are both necessary and shared across multiple domains, scale
economy produces scope economy. In principle this could apply to any operational activity or
process that reflects a common need in diverse enterprise units. For substantial scope economy to
arise, sharing must enable the adoption of a procedure or technology that would not be possible or
economically viable if each unit continued to operate in isolation e.g. the use of a more effecitve,
higher capacity computing and information systems. Because the concept of scope economy is
intuitively attractive, many investments are justifed by such claims, but it is probable that they are
not always realised in practice.
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Which of the following is the assignment process used with normal costing?
A) Actual direct materials, actual direct labor and actual overhead cost are assigned to products. B) Actual direct materials cost is assigned to products, but direct labor and overhead costs are assigned using predetermined rates. C) Actual direct labor cost is assigned to products, but direct material and overhead costs are assigned using predetermined rates. D) Actual direct material and direct labor costs are assigned to products, but overhead costs are assigned using predetermined rates. E) all manufacturing costs are assigned using predetermined rates
The maximum inventory level experienced in the EOQ model is?
a. 0 b. Q/2 c. Q d. 2Q
Critics of administrative agencies claim that they violate the doctrine of separation of powers. Explain the basis for this criticism. Explain why agencies are so prevalent despite the absence of any explicit provision for their existence in the Constitution. Discuss fully
Drake enters into a contract with Eve, who claims to have access to a stock-trading algorithm that will multiply an investment many times over. When the results do not match this promise, Drake learns that Eve does not have access to any unique software and files a suit against her, alleging fraud. Proof of an injury is required to
a. recover damages. b. rescind the contract. c. undo Eve's influence. d. punish the defendant.