When a company is able to expand its operations by exporting globally, it can often achieve greater economies of scale which results in ______.

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15-11-2022
Business

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When a company is able to expand its operations by exporting globally, it can often achieve greater economies of scale which results in ______.

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SwetaUpadhayay SwetaUpadhayay · Answer 1 · 2022-11-18T13:35:41+01:00

When a business is able to grow by exporting its products around the world, it can frequently achieve greater economies of scale, which leads to lower unit costs.

What is a unit cost?

The total cost incurred by a business to produce, hold, and sell one unit of a particular good or service is referred to as the unit cost. Unit costs and cost of goods sold are equal. The costs involved in producing a good or service, both fixed and variable, are all included in this accounting metric.

The unit cost is a crucial cost parameter in a business' operational analysis. An easy technique to determine whether a firm is manufacturing a product efficiently is to identify and analyze the unit expenses of the company. In a corporation's financial accounts, the unit cost will be stated.

These reports play a significant role in the analysis of internal management. By business type, different unit cost reporting requirements may apply.

Learn more about unit costs with the help of the given link:

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