Variable Cost Divided by the Quantity of Output Produced Is

question 100

Multiple Choice

Variable cost divided by the quantity of output produced is:

• A) marginal cost.
• B) average total cost.
• C) average fixed cost.
• D) average variable cost.

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Definitions:

Capital Cost Allowance (CCA)

A taxable expense in Canadian tax law that represents a yearly deduction for the depreciation of property used in a business or profession.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not expected to be converted to cash in the near-term.

Initial Cost

The initial expenditure involved in acquiring an asset or starting a project, before any operational or maintenance costs.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity and operational efficiency of the business.