Why Is a Physical Count of Supplies Necessary at the End

question 90

Essay

Why is a physical count of supplies necessary at the end of the accounting period?

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Definitions:

AFC

Average Fixed Costs, which are total fixed costs divided by the quantity of output produced.

AVC

Average Variable Cost; the total variable costs divided by the quantity of output produced.

ATC

Average Total Cost, which is the total cost divided by the quantity of output produced, representing the per-unit production cost.

Marginal Product

The additional output derived from the addition of one more unit of a variable input, holding all other inputs constant.