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aleksley [76]
3 years ago
5

PureRinse Inc. is a brand reputed for its wide variants of body wash that introduced its range of shampoos and skin moisturizers

a few years ago. Since most of its products could be produced using the same resources and technology, the company's cost structure lowered, while its product portfolio widened. In this scenario, what value and cost drivers is PureRinse applying?
Business
1 answer:
klemol [59]3 years ago
6 0

Answer:

Economics of scope.

Explanation:

Economies of scope can easily described to be situations in which the long-run average and marginal cost of a company, organization, or economy decreases, due to the production of some complementary goods and services. An economy of scope means that the production of one good reduces the cost of producing another related good.

Economies of scope differ from economies of scale, in that the former means producing a variety of different products together to reduce costs while the latter means producing more of the same good in order to reduce costs by increasing efficiency.

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Answer: Option A

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Thus, only payment of rent and workers salary will be considered operating activities and the company will be having total of $1750 of cash outflow.

Hence the correct option is A.

4 0
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The following accounts were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet: Accumulated Deprecia
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Answer:

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Explanation:

INCOME STATEMENT

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Therefore, The Net income for the period is $11900.

3 0
2 years ago
Why are small businesses an important part of the American economy
sineoko [7]
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5 0
3 years ago
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ki77a [65]

Answer:

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