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

Question

Quizplus · Accepted Answer

Economies of scale can have a significant impact on the financial statements of a company, particularly in terms of cost savings and revenue growth. Therefore, it is important for management to consider the potential effects of economies of scale when constructing pro forma financial statements.

Managements Need Not Consider Economies of Scale in Operations When