Economies of scope refer to cost efficiencies that a business achieves by diversifying its product lines, leveraging shared resources and capabilities to produce a wider array of products.
Economies of scope refer to the increases in efficiency and potential sales that businesses experience when they produce, distribute, and market a range of products rather than focusing on a single product or type of product.
Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.