Management need not consider economies of scale in operations when constructing pro forma financial statements since economies of scale do not impact the financial statements.

Question

Quizplus · Accepted Answer

Economies of scale can have a significant impact on the financial statements, as they can lead to higher levels of revenue and profitability. As such, management should consider the potential economies of scale that may be achieved through a project or investment when constructing pro forma financial statements.

Management Need Not Consider Economies of Scale in Operations When