The Total Cost (TC) of Producing Computer Software Diskettes (Q)

question 118

Multiple Choice

The total cost (TC) of producing computer software diskettes (Q) is given as: . What is the variable cost?

• A) 200
• B) 5Q
• C) 5
• D) 5 + (200/
• E) none of the above

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Definitions:

General Journal

A bookkeeping ledger that records each financial transaction of a company in chronological order.

Net Income

The total earnings of a company after subtracting all expenses and taxes from total revenue; often referred to as the bottom line.

Revenue and Expense Account Balances

The amounts recorded in accounts tracking the income earned and expenses incurred by a business over a period of time.

Owner's Capital Account

An equity account on the balance sheet representing the owner's investment and retained earnings in the business.