Average Total Cost Is

question 69

Multiple Choice

Average total cost is:

• A)the change in variable cost divided by the change in quantity.
• B)total cost divided by quantity.
• C)the change in quantity divided by the change in labor costs.
• D)total cost times quantity.

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Definitions:

Accounting Cycle

The process of recording and processing all financial transactions of a company, from the time the transaction occurs, to its representation on financial statements.

Adjusted Trial Balance

A list of all the accounts and their balances after adjusting entries are made, used to prepare financial statements.

Adjustment Columns

Columns in financial statements or ledgers used to make necessary adjustments for accrual accounting, such as for accrued expenses or revenues.

Trial Balance Columns

These are the two columns in a trial balance where all the debit balances are listed on one side and all the credit balances on the other, helping to ensure that total debits equal total credits.