COST ACCOUNTING
BREAK EVEN POINT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is NOT an economy of scale?
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purchasing economies
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communication economies
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marketing economies
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technical economies
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Explanation:
Detailed explanation-1: -Answer and Explanation: The correct option is b. Increase in output. Simply increasing output does not result in economies of scale.
Detailed explanation-2: -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?
Detailed explanation-3: -There are six types of internal economies of scale: technical, managerial, marketing, financial, commercial, and network economies of scale.
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