Economies of scale are the cost advantages that companies gain when production becomes efficient, as costs can be spread over more products.
The size of a business is related to whether it can achieve economies of scale - larger companies will have greater cost savings and higher levels of production.
The scale effect can be both internal and external. Internal savings are driven by factors within a single company, while external factors affect the entire industry.
Evaluation costs are the fees a company pays for discovering defects in its products before they are delivered to customers; they are a form of quality control.
The articles of association can be seen as a user manual for the company, defining its purpose and outlining the methodology for carrying out the necessary day-to-day tasks.
When a company or government agency buys or leases existing manufacturing facilities to launch new manufacturing activities, this is called an investment in existing facilities.
The Code of Ethics sets out the ethical principles of the organization and the best practices to be followed with respect to honesty, integrity and professionalism.