1. Will increase automatically when sales volume is increased:
A. Financing feedbacks
B. AP and accruals
C. Liabilities and equity
D. Retained earnings
E. Economies of scale
2. Can lead to higher per unit costs as production volume increases.
A. AP and accruals
B. Volume purchase discounts for inventory
C. Lumpy (or large increment) assets
D. Excess capacity
E. Financing feedbacks