Some Costs Do Not Vary with the Quantity of Output

question 321

Multiple Choice

Some costs do not vary with the quantity of output produced. Those costs are called

• A)marginal costs.
• B)average costs.
• C)fixed costs.
• D)explicit costs.

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Definitions:

Capable

Refers to the ability or capacity of something or someone to achieve a particular task or goal.

X-bar And R-charts

Tools used in statistical process control; the X-bar chart monitors the mean of a process whereas the R-chart monitors the range or dispersion.

Batch

A grouping of a number of items processed or produced together as a single lot.