Which of the Following Statements Is Not Correct

question 125

Multiple Choice

Which of the following statements is not correct?

• A)The marginal cost of the fifth unit of output equals the total cost of five units minus the total cost of four units.
• B)The total variable cost of seven units equals the average variable cost of seven units times seven.
• C)If marginal cost is rising, then average variable cost must be rising.
• D)The marginal cost of the fifth unit of output equals the total variable cost of five units minus the total variable cost of four units.

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Definitions:

Foreign Currency

Currency used in a country other than one's own, involving exchange risk when converting from one currency to another.

Net Realizable Value

The estimated selling price in the ordinary course of business minus any costs of completion, disposal, and transportation.

Inventory

The total amount of goods or materials a company has in stock, including raw materials, work-in-progress, and finished goods.