Answer:
The correct answer is D: economies of scale
Explanation:
Economies of scale are the diminished cost by companies when production becomes efficient. Companies can achieve economies of scale by increasing production and lowering costs. <u>This happens because fixed costs are spread over a larger number of goods.</u> There are implications in variable costs as well (for example in obtaining discounts by large purchases from suppliers). In general, the larger the scale, the more cost savings.
The cost per unit depends on how much the company produces. Larger companies can produce more by spreading the cost of production over a larger amount of goods. Specialization of labor and more integrated technology boost production volumes. Lower per-unit costs can come from bulk orders from suppliers, larger advertising buys, or lower cost of capital. Spreading internal function (for ex: accounting, information technology, and marketing) costs across more units produced and sold helps to reduce costs.
The type of decision maker that tends to choose the first available option in haste is an impulsive decision maker. It is because this is where the decision maker tends to act in a way that is based on their instinct and that they don’t consider other options because they act immediately without having to think about the decision that they are making.
Estée lauder would not choose to sell to cvs or dollar general because
"<span>
customer expectations."</span>
Estée Lauder would not
choose to sell to CVS or Dollar General since its clients would not expect to
shop at those stores for top of the line makeup. Rather, CVS may convey less costly
cosmetic brands, as Revlon and Maybelline.
Answer:
True
Explanation:
A cost sheet is a statement that contains all the cost incurred on a cost unit or a cost centre. A typical cost sheet will accumulate all the direct and indirect material consumed in the production of a product. Also included in the cost sheet is direct labor incurred in the making of a product including allocated overhead. With this, the margin on a product can be observed from a cost sheet.
