Chapter 19 Flashcards
Average cost per unit
Is the total cost of production divided by total output ( sometimes referred as unit cost )
By Mariana Miranda
Definition of economies of scale
Rafael Forgues
Are the factors that lead to a reduction in average costs as business increases in size.
Total cost
They are fixed and variable costs combined.
-Ronald
Variable cost
costs which vary directly with the number of items sold or produced.
-Natalia
Poor communication
If there is slow or innacurate communication then serious mistakes can occur which lead to lower efficiency and higher average costs.
-Natalia
what is break-even point
Rafael Forgues
is the quantity that must be produced/sold for total revenue to equal total costs
Diseconomies of scale : Lack of commitment from employees
The employees lack of motivation
5 economies of scale
Purchasing economies, Marketing economies, Financial economies, Manegerial economies, Technical economies
By Mariana
The revenue
revenue of a business is the income during pead of time from the sale ef goods or services. Total revenue-quantity soil price
-Ronald
Poor communication
If there is slow or innacurate communication then serious mistakes can occur which lead to lower efficiency and higher average costs.
-Natalia
Diseconomies of scale : Weak coordination
Employees could also take a long time to react to a managerial decision
By David
Limitations of break even charts
All goods produced are actualy sold
By David
Limitations of break even charts
All goods produced are actualy sold
By David
Advantages of break even charts
Read off expected profit or loss, show the margin of safety, the graph can be redrawn
By Mariana
How do you get the revenue?
Total units x Price
-Natalia
