________ are cost savings that result when an organization is able to use underutilized resources more effectively because they can be shared across several different products or tasks.
A) Economies of scale
B) Sunk costs
C) Deffered revenues
D) Economies of scope

Question

Quizplus · Accepted Answer

Economies of scope refer to cost savings that occur when an organization can use underutilized resources more effectively by sharing them across different products or tasks. This allows the organization to spread its costs over a larger number of products or services, reducing the per-unit cost of production for each. In contrast, economies of scale refer to cost savings that occur when an organization can produce larger quantities of a product, typically as a result of increased efficiency or bargaining power, resulting in lower per-unit costs.

________ Are Cost Savings That Result When an Organization Is