Advantages of Economies of Scale: Internal Controls

Published On:
October 03, 2017
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Finance function cost as a percentage of revenue varies widely across organizations. However, finance costs as a percentage of revenue are significantly lower for large organizations than for small organizations, primarily due to economies of scale found within larger firms. When comparing internal controls performance between large and small organizations, there is an even larger difference in cost effectiveness and process efficiency. Small organizations should use the experience of large organizations to find innovative ways to improve performance.