Seeing is believing!

Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.

Basic Question 9 of 10

If an industry enjoys economies of scale, its ______ tend to be positively correlated with its sales levels.

I. average cost.
II. gross margin.
III. operating margin.

User Contributed Comments 0

You need to log in first to add your comment.
I used your notes and passed ... highly recommended!
Lauren

Lauren

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.