Average Variable Cost Is

question 5

Multiple Choice

Average variable cost is:

• A)variable cost per unit multiplied by output.
• B)total variable cost divided by output.
• C)the difference between average total cost and total variable cost.
• D)the difference between total cost and total variable cost.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its short-term assets.

Liquidity

The ability of an asset to be quickly converted into cash without significant loss in value.

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.

Income Statement

A financial document that provides a summary of a company's revenues, expenses, and profits over a specific period, detailing its ability to generate earnings.