Which of the Following Cost Curves Is Most Often Drawn

question 112

Multiple Choice

Which of the following cost curves is most often drawn with a U shape?

• A) Marginal cost
• B) Fixed cost
• C) Total cost
• D) Average fixed cost

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Definitions:

Target Return-on-sales Pricing

A pricing strategy where the price is set with the aim of achieving a specific return on sales percentage.

Profit Percentage

A financial metric that shows what percentage of sales has turned into profits, indicating the efficiency of a company's operations.

Sales Volume

The total quantity of goods or services sold by a company within a specific period.

Target Return-on-sales Pricing

A pricing strategy aiming to achieve a specific return on sales, calculated by setting prices based on the desired profit margin over costs.