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Cost advantages derived from a large sales volume are called economies of:?

        A)    scale.        B)    scope.        C)    location.        D)    density.

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Question added by Vinod Jetley , Assistant General Manager , State Bank of India
Date Posted: 2015/06/25
Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

    A)    scale.  ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

SUMIT SHARMA
by SUMIT SHARMA , Electrical Engineer Captive Power Plant , Gallantt Metal Ltd.

scale is the right word to set

Abeba Assemaw
by Abeba Assemaw , Financial Consultant , M-Birr Ltd.

It is A) Economies of Scale

Paolo Borchetta
by Paolo Borchetta , Managing Director , NIMM International Mauritanie Mining

Economies of scale, answer (A)

Sheikh Ahmed
by Sheikh Ahmed , CEO , Automotive Manufacturers Ltd.,

It is called economies of scale where the product cost becomes half and our profits goes up. This is production management technique used to reduce the cost where companies can reap maximum profits. We all understand there are fixed cost involved in production of any product whether we manufacture or not we have to pay like salaries/electricity other misc expenses etc., after getting into break even the product cost becomes almost less than half except for raw material cost its absolute zero.. Today every manufacturer is eyeing either india or china to reduce their costs further for higher profits also bcos of low labor and manufacturing costs..

khaled elkholy
by khaled elkholy , HR MANAGER , misk for import & export

Scale is right answer.......

 

The benefits arising from expansion depend upon the effect of expansion on productive ... The reductions in cost associated with expansion are called economies of SCALE..   (A)

Rausheyed Rollins
by Rausheyed Rollins , Sr.Project Manager/ Sr.Business Analyst , Assuage Techonolgy Group

Often operational efficiency is also greater with increasing scale, leading to lower variable cost as well.

Ali Yakub Seesi Rutherfod
by Ali Yakub Seesi Rutherfod , Deputy DIRECTOR Director of Education , Head of Department of Social Science , St. Jerome Snr High School

scale is the correct answer

Thank you for invitation sir

 

Economies of Scale

 

Definition

The cost advantage that arises with increased output of a product  because of the inverse relationship between the quantity produced and per-unit fixed costs

 

 

 

 

 

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