Based on the Adjusted Account Balances Below What Is the Total

question 87

Multiple Choice

Based on the adjusted account balances below what is the total of the asset side of the adjusted tabular summary? $\begin{array} { l r l r } \text { Service revenue } & \$ 5,300 & \text { Equipment } & \$ 7,400 \\\text { Cash } & 2,525 & \text { Prepaid insurance } & 1,225 \\\text { Unearned service rev. } & 5,320 & \text { Depreciation expense } & 640 \\\text { Salaries and wages expense } & 1,050 & \text { Accum. depreciation } & 1,280 \\\text { Common stock } & 390 & \text { Retained earnings } & 550\end{array}$

• A)$11150
• B)$9870
• C)$11560
• D)$10510

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Definitions:

Total Cost

The entirety of expenses incurred during the production process of goods or services, which includes both fixed and variable costs.

Total Variable Cost

The sum of all variable costs (costs that change with the level of output) involved in producing a particular quantity of output.

Average Variable Costs

The total variable costs (costs that change with the level of output) of production divided by the quantity of output produced.

Best Combination

The optimal mix of goods or strategies that maximizes satisfaction or utility given constraints like budget or resources.