Which of the Following Is True If the Total Variable

question 166

Multiple Choice

Which of the following is true if the total variable cost curve is rising?

• A) Average fixed cost is increasing.
• B) Marginal cost is decreasing.
• C) Marginal cost is increasing.
• D) Average fixed cost is constant.

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Definitions:

Volume Variance

A measurement of the difference between the expected volume of production and the actual volume produced, impacting costs.

Cost

The expenditure incurred by a business to produce, acquire, or maintain a good or service.

Overhead Costs

Expenses related to the operation of a business that cannot be directly attributed to a specific product or service.

Fixed Manufacturing Overhead

Costs related to manufacturing that remain constant regardless of the level of production or sales.