COST ACCOUNTING
VARIABLE COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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diseconomies of scale at low levels of output.
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large economies of scale at low levels of output.
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large economies of scale at low levels of output.
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competing firms in the same industry
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Detailed explanation-1: -All other things being equal, which one of the following is most likely to discourage the growth of a firm? Diseconomies of scale at low levels of output.
Detailed explanation-2: -An overcrowding effect within an organization is often the leading cause of diseconomies of scale. This happens when a company grows too quickly, thinking that it can achieve economies of scale in perpetuity.
Detailed explanation-3: -Diseconomies of scale may result from several factors, including communication breakdown, lack of motivation, lack of coordination, and loss of focus by the management and employees.
Detailed explanation-4: -Diseconomies of scale occur when firms have coordination issues because they become so large that they face difficulties managing their operations as efficiently with a lower quantity.