If a Firm's Total Cost of Production Is Equal to $90,000

question 61

True/False

If a firm's total cost of production is equal to $90,000 and they have a fixed cost of $45,000, the company's variable costs are also $45,000.

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Definitions:

Accounting Period

A specific period of time covered by accounting records and financial statements, typically a year or a quarter.

Dividends Account

An account in the general ledger that records payouts to shareholders from the company's earnings.

Permanent Account

An account that is not closed at the end of the accounting period and carries its ending balance into the next period, typically including assets, liabilities, and equity accounts.

Dividends Account

An account in the general ledger that records the amount of dividends declared by a company to be paid to shareholders.