The Minimum Points of the Average Variable Cost and Average

question 167

Multiple Choice

The minimum points of the average variable cost and average total cost curves occur where the

• A)marginal cost curve lies below the average variable cost and average total cost curves.
• B)marginal cost curve intersects those curves.
• C)average variable cost and average total cost curves intersect.
• D)slope of total cost is the smallest.

Understand how the partial equity method affects the investment account.

Comprehend the treatment of excess consideration transferred over book value.

Recognize the effects of revaluation of assets and liabilities in consolidation.

Evaluate the impact of fair value adjustments on the investment account.

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Definitions:

Standard Deviation

An indicator of the spread or variability within a data set; where a small standard deviation indicates values closely clustered around the average, and a large standard deviation suggests they are widely scattered.

Z-score

A statistical measure that describes a value's position relative to the mean of a group of values, expressed in units of standard deviation.

Z

In statistics, often represents the standard score, which is the number of standard deviations a data point is from the mean.

Percentage

A way of expressing a number as a fraction of 100, used to compare proportions.