Maximizing Total Revenue Turns Out to Be the Same as Maximizing

question 129

Multiple Choice

Maximizing total revenue turns out to be the same as maximizing profit only when

• A)average fixed cost declines continually as output rises.
• B)a firm has no fixed costs.
• C)a firm has no variable costs.
• D)a firm has both variable and fixed costs.

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Definitions:

Accounts Payable Turnover Ratio

A liquidity metric that measures how quickly a company pays off its suppliers by dividing total purchases by average accounts payable.

Inventory Accounting Methods

Different approaches, such as FIFO (First In, First Out), LIFO (Last In, First Out), and weighted average cost, used to value and manage inventory.

Adjusting Entry

An adjusting entry is a journal entry made in accounting records to adjust income and expense accounts so they comply with the accrual concept.