Variable Cost Divided by the Quantity of Output Produced Is

question 100

Multiple Choice

Variable cost divided by the quantity of output produced is:

• A) marginal cost.
• B) average total cost.
• C) average fixed cost.
• D) average variable cost.

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Definitions:

Market Value

The going rate for an asset or service available for exchange in the open market.

Equity

The value of an asset after deducting the value of liabilities, representing ownership interest in a company or property.

Cost of Capital

The rate of return that a company must earn on its project investments to maintain its market value and attract funds.

Debt/Equity Ratio

A fiscal ratio that reflects the comparative amount of equity from shareholders and borrowed funds utilized to support a company's resources.