Product Diversification

Diagonal Expansion
A business growth strategy where a company utilizes existing equipment to produce new products with minimal addition of materials.
Economies of Scope
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.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.