A German business that makes millions of vehicle parts annually was able to lower its cost per unit as it boosted production. This serves as an example of the idea of economies of scale.
Cost advantages that businesses enjoy when production becomes efficient are known as economies of scale. By increasing production and reducing expenses, businesses can attain economies of scale. Costs are divided among more products, which causes this. Costs come in fixed and variable forms.
When it comes to economies of scale, the size of the business typically matters. Cost savings increase with business size. Both internal business and external economies of scale are possible. While external economies of scale are influenced by outside causes, internal ones are based on management choices.
Economies of scale result in cheaper per-unit costs for a variety of reasons. Production volumes are first increased through worker specialization and better technological integration. Additionally, decreased per-unit prices may result from larger advertising purchases, bulk orders from suppliers, or lower startup costs. Third, cost reduction is aided by dividing internal function costs among a greater number of manufactured and sold units.
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Answer:
In economics, nominal data are values expressed in monetary terms for a given year whiles real data are values that have been adjusted for price level changes.
Explanation:
Purchased shares = 680 shares * $11.00 ($7,480)
Year-end shares worth = 680 shares * $2.20 ($1,496)
Loss of shares = $7,480 - $1,496 ($5,984)
OR
Loss in shares price= $11.00 - $2.20 ($8.80)
Loss of shares = 680 shares * $8.80 ($5,984)
Barney can deduct $5,984 as the amount of loss of this year.
Answer:
a. income after taxes - consumption.
Explanation:
Private savings is the amount that is saved in a household. The salary earners in a household usually get their income(salary or wages) in which a percentage is removed as tax. The remainder of the money is used to finance the home.
The private savings is simply gotten by income tax minus the consumption.
Answer:
Incorporates the timing of cash flows.
Explanation:
The Accounting Rate of Return uses accrual accounting in order to determine net income instead of actual cash flows like the NPV, payback period or IRR.
ARR = average annual income / average investment.
For example, an increase in accounts receivable is not considered an increase in net cash flows, but it is considered part of total revenue which increases net income
