Which of the Following Statements Is Correct

question 166

Multiple Choice

Which of the following statements is correct?

• A) Marginal cost is a variable cost.
• B) Marginal cost is a fixed cost.
• C) Marginal cost is a long-run total cost.
• D) Marginal cost is a short-run average fixed cost.
• E) Marginal cost is a long-run average fixed cost.

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Definitions:

Cost of Goods Sold

The direct financial outlays related to producing the products that a company sells.

Purchase Returns

Goods returned to the supplier due to defects, damage, or dissatisfaction, resulting in a refund or credit to the buyer.

Freight-In

Costs associated with the shipping of raw materials or goods into a production facility or warehouse, typically included in the inventory cost.

Inventory Decreased

A situation where the quantity of goods available for sale by a business is reduced, typically because of sales or use.