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Production cycles

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Production cycles

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  • March 9, 2017 at 12:32 pm #377046
    azaramirov
    Participant
    • Topics: 9
    • Replies: 36
    • ☆

    Hi. Can you please answer, In which cycle the total cost per unit will be lowest? Maturity or Growth stage?

    March 9, 2017 at 2:31 pm #377107
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    There is no ‘rule’ but it is most likely to be at the maturity stage because the business will be able to get the maximum benefit of economies of scale at that stage and since they will be at maximum production the fixed costs per unit will be at a minimum.

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