When a firm sees average costs start to increase as production increases, this is known as diseconomies of scale.
What Are Diseconomies of Scale?
When a corporation or business expands to the point where the costs per unit rise, this is known as a diseconomy of scale. It happens when a firm's use of economies of scale is no longer viable. According to this theory, when output increases, a firm experiences an increase in costs rather than continuing to see reducing expenses and rising output.
What causes diseconomies scale?
Diseconomies of scale can be the result of several things, including poor management and employee communication, a lack of drive, a lack of coordination, and a loss of concentration.
How do you manage diseconomies of scale?
Businesses may divide themselves into more controllable parts in an effort to alleviate scale-related inequities. A huge multinational, for instance, might be divided up into regional geographic areas, with local managers being rewarded for maximizing efficiency.
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Answer: Option B
Explanation: In simple words, it refers to a tax structure in which the tax payer is charged as per his or her ability to pay. Under this system , a lower tax bracket is applied for low income levels and high for high income levels.
The basic assumption for applying such structure is that the high class have earned that money from the resources of the lower class thus they have to give a higher share from their income so that the lower class could be developed from that money.
Answer:
B: In general, people are honest
Explanation:
This is because<em> business ethics</em> is the study of appropriate business policies and practices regarding potentially controversial subjects including corporate governance,<u> insider trading, bribery, discrimination</u>, corporate social responsibility, and fiduciary responsibilities.
Answer:
True
Explanation:
Unearned revenue is cash received from a customer before goods are delivered or services offered. It is an amount received for work that is not yet done. Unearned revenue is a liability to the business. It may also be called deferred revenue.
As per the accruals principle, revenue is recognized when the time when an economic activity that generates income has happened. A sale of either a service or good has to happen, or the business has to incur an expense. A payment whose work is yet to be done is not recognized as revenue. The journal entry is to debit to the cash account and credit the unearned revenue account.
