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Economies of scale

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Economies of scale

  • This topic has 3 replies, 2 voices, and was last updated 3 years ago by MikeLittle.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • March 26, 2022 at 7:54 pm #651954
    ilham9089
    Participant
    • Topics: 301
    • Replies: 190
    • ☆☆☆

    Hi, can you please explain what economies of scales are?

    March 26, 2022 at 8:31 pm #651961
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    2 firms have 2 offices, 2 sets of staff, 2 lots of overheads, 2 lots of clients, 2 administration departments, 2 secretarial pools, 2 office managers

    Merge the firms and you’ve got 1 office, 1 set of staff,1 lot of overheads, 1 lot of clients, 1 administration department, 1 secretarial pool, 1 office manager

    Many of your 2 sets of expenses have been reduced by … economies of scale

    OK?

    March 26, 2022 at 11:18 pm #651971
    ilham9089
    Participant
    • Topics: 301
    • Replies: 190
    • ☆☆☆

    Thank you. Great explanation.

    March 27, 2022 at 8:13 am #651992
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    You’re welcome

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