Total Fixed Cost (TFC)

question 264

Multiple Choice

Total fixed cost (TFC)

• A)falls as the firm expands output from zero, but eventually rises.
• B)falls continuously as total output expands.
• C)varies directly with total output.
• D)does not change as total output increases or decreases.

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Definitions:

Average Inventory

The mean amount of inventory held by a company over a specified period, indicating how much stock is maintained on hand.

Total Assets

The sum of all current and non-current assets owned by a company, which represents the total resources that a company can utilize to generate revenue.

Breakeven Analysis

The performance of what-if calculations under different revenue and cost conditions.

Gantt Charts

Visual project management tools that display the duration of tasks against the progression of time, helping track project schedules and deadlines.