FASB Technical Bulletins

question 45

Multiple Choice

FASB Technical Bulletins

• A) are similar to FASB Interpretations in that they establish enforceable standards under the AICPA's Code of Professional Ethics.
• B) are issued monthly by the FASB to deal with current topics.
• C) are not expected to have a significant impact on financial reporting in general and provide guidance when it does not conflict with any broad fundamental accounting principle.
• D) were recently discontinued by the FASB because they dealt with specialized topics having little impact on financial reporting in general.

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Definitions:

Average Variable Cost

The cost a company incurs for each unit of output, which changes with the level of production, excluding fixed costs.

ATC

Abbreviation for “Average Total Cost,” reflecting the total cost of production divided by the number of goods produced, in economic terms.

MC

Stands for Marginal Cost, which is the increase or decrease in the total cost that arises from producing one additional unit of a product.

Variable Cost

Expenses that vary directly with the volume of products or services a company generates.