Match the Following Terms with Their Definitions

question 162

Multiple Choice

Match the following terms with their definitions.
-Vary in proportion to changes in activity levels

• A)Relevant range
• B)Break-even point
• C)Contribution margin
• D)Fixed costs
• E)Variable costs

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Definitions:

Marginal Cost

The expenditure resulting from the creation of an additional unit of a product or service.

Short-run Total Cost

The total of all costs, both fixed and variable, that a firm incurs in producing goods or services in the short run.

Average Total Cost

The cost per unit of output, determined by dividing the overall production cost by the quantity produced.

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced.