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cross subsidise

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › cross subsidise

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by Ken Garrett.
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  • June 7, 2016 at 3:10 pm #320355
    Vipin
    Member
    • Topics: 151
    • Replies: 374
    • ☆☆☆☆

    What does cross subsidise mean?
    Diversification might achieve cross subsidise which is an advantage.

    June 7, 2016 at 3:35 pm #320387
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10597
    • ☆☆☆☆☆

    it is where profits from one sres sre used ot subsidise/pay for other areas.

    it does not depend on diversification. Eg you coulf use profits from sales in UK to subsidise sales in another country.

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