What are the causes of diseconomies of scale?

Diseconomies of scale occurs when the average cost of a product begins rising as a business expands. This may occur due to problems communicating: as a business expands it's chain of command increases which makes communication slow and more likely for errors to occur. Secondly, diseconomies of scale can also arise due to the problem of managing large businesses. It is difficult to coordinate and oversee operations if a business is large and, for instance, has various different departments and regions.