COST ACCOUNTING
BREAK EVEN POINT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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it leads to lower efficiency and higher average costs
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it takes longer for decisions to be communicated to all part of a business
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the average costs of marketing falls as sales increase
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sending and receiving accurate messages take longer time
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Detailed explanation-1: -Reduction of the cost Economies of scale are cost reductions experienced by businesses when their level of output grows. Cost reduction opens up more opportunities for businesses to lower their pricing structure in order to obtain more sales. This is the primary benefit of economies of scale.
Detailed explanation-2: -The benefits of economies of scale to industries and businesses are wide-ranging, but generally speaking, it enables large corporations to reduce their costs, pass the savings onto the consumer, and gain an advantage over the competition.
Detailed explanation-3: -Economies of scale means reduction in unit of production. Economies of scale refers to reduced cost per unit that arise from increased total output of a product. Was this answer helpful?