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How do economies of scale and lumpy assets affect financial forecasting? refer text book FINANCIAL MANAGEMENT THEORY...

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Finance


How do economies of scale and lumpy assets affect financialforecasting?

refer text book FINANCIAL MANAGEMENT THEORY ANDPRACTICE by BRIGHAM and EHRHARDT

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Ans Assets are said to be lumpy when it cannot be bought insmall increments it can only be bought in large discrete units thatmean it cannot buy in small quantity Eg Real state is one of thebest examples of lumpy assets other examples can be considered asplant machinery These types of assets are illiquid Inmanufacturing industries these types of assets are being used Italso affects the Fixed assets sales ratioEconomies    See Answer
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How do economies of scale and lumpy assets affect financialforecasting?refer text book FINANCIAL MANAGEMENT THEORY ANDPRACTICE by BRIGHAM and EHRHARDT

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