Match Each Phrase That Follows with the Term (A-E) It

question 69

Short Answer

Match each phrase that follows with the term (a-e) it describes. Some terms may not be used and other terms may be used more than once.
-= Cost Amount per Unit + Markup
A)Total cost method
B)Variable cost method
C)Normal selling price
D)Product cost method
E)Yield pricing

• A)Total cost method
• B)Variable cost method
• C)Normal selling price
• D)Product cost method
• E)Yield pricing

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Definitions:

Average Variable Cost (AVC)

The total variable costs of production divided by the quantity of output produced, representing the variable cost per unit of output.

Average Total Cost

The total cost of production divided by the quantity of output produced, representing the average cost per unit of good or service.

Average Fixed Cost

The fixed costs of production (costs that do not change with output) divided by the quantity of output produced, which decreases as production increases.

Total Costs

The aggregate financial expense incurred in the production of goods or services, including both fixed and variable costs.