Accounting Multiple Choice Question – 29 June 2025

Which of the following is a source of economies of scale?

Select ONE answer:

1. The introduction of a new product
2. Bulk buying
3. The employment of skills in production
4. Cost savings resulting from new production techniques

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct == > Technical improvements could apply at any scale of operations, as well as the employment of skills and the introduction of a new product. The ability to obtain discounts because of the size of orders (bulk buying) is a direct result of larger scale operations.
3. Not correct
4. Not correct

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