Chapter 19 - Cost, Scale of production and breakeven analysis

Salary is an example of

• variable cost

• fixed cost

• average cost

• total cost

When a bakery produces more loaves of bread, it will require purchasing additional flour and yeast. This is an example of ___________ cost.

• fixed

• average

• total

• variable

Total cost = ________ + ___________

• fixed cost + variable cost

• variable cost + average cost

• Average cost + sales revenue

• Average cost + number of outputs

Economies of Scales are __________ that will reduce __________ cost when business ____________ in size.

• factors, total, increases

• factors, average, reduces

• factors, average, increases

• Factors, total, reducees

ABC factory benefits from ____________ of scale when they produce their furniture using flow production.

• purchasing

• technical

• managerial

• marketing

When a supermarket chain buys products in bulk, they benefit from _________ economies of scale.

• technical

• marketing

• purchasing

• financial

When ABC private limited is able to hire specialist, they benefit from ___________ economies of scale.

• technical

• purchasing

• marketing

• managerial

At a large multinational corporation, the management noticed that despite their size, they were not benefiting from economies of scale due to _________________. [There are more than 1 ans]

• low moral of staff

• lack of communication

• financial problems

• poor decision making