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Basic Question 4 of 10

Besides production volume, what other factor can influence the realization of economies of scale?

A. Increasing fixed costs.
B. Higher variable costs.
C. Efficient use of resources.
D. Decreasing sales levels.

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Learning Outcome Statements

evaluate whether economies of scale are present in an industry by analyzing operating margins and sales levels;

demonstrate methods to forecast cost of goods sold and operating expenses;

demonstrate methods to forecast nonoperating items, financing costs, and income taxes;

CFA® 2024 Level II Curriculum, Volume 2, Module 17.