Figure and Table: Variable, Fixed, and Total Costs

question 32

Multiple Choice

Figure and Table: Variable, Fixed, and Total Costs (Figure and Table: Variable, Fixed, and Total Costs) Look at the figure and table Variable, Fixed, and Total Costs.In the figure, when 96 bushels of wheat is produced, the average fixed cost is ,
Average variable cost is ________, and average total cost is _.

• A)$7.84; $11.76; $19.60
• B)$133.33; $200; $333.33
• C)$4.17; $16.67; $20.83
• D)$5.33; $13.33; $18.67

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Definitions:

Periodic Inventory System

A method used in accounting to determine inventory levels by taking physical counts at specific periods.

Perpetual Inventory System

An approach to inventory accounting where transactions are immediately documented through computerized point-of-sale systems and software designed for managing enterprise assets.

Inventory Shrinkage

The decrease in product inventory from the time of acquisition from a supplier to the moment it's sold to a customer, frequently as a result of theft, damage, or mistakes.

Credit Memo

A document issued to a buyer, crediting them for part of a sale due to a return or overcharge.