Which of the following statements is correct?
A) Operating costs per sales dollar are usually lower for larger retailers than they are for small retailers.
B) Larger retail firms generally have higher operating costs per sales dollar.
C) Retailers cannot be classified by number of stores.
D) Retailers are rarely classified by sales volume.
E) The operating performance of retailers has no relationship to retailers' size.

Question

Quizplus · Accepted Answer

This statement is true as larger retailers benefit from economies of scale, which reduce their operating costs per sales dollar. Small retailers often lack this advantage due to their smaller size.

Which of the Following Statements Is Correct