If Melissa Owns a Software Company That Incurs No Fixed

question 180

Multiple Choice

If Melissa owns a software company that incurs no fixed costs,then

• A) her total cost equals her total variable cost.
• B) she will earn an economic profit.
• C) her total variable cost is less than her total cost.
• D) her total cost equals zero.
• E) her marginal cost must equal zero.

Understand the importance of conciseness and reader-centeredness in business communication.

Identify and differentiate between effective and ineffective features of business communication.

Recognize the role of cultural sensitivity and clear language when communicating with non-English speakers.

Appreciate the value of excellent writing and communication skills in professional careers.

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Definitions:

Activity-based Costing

An accounting method that assigns costs to products or services based on the activities they require, aiming for more accurate cost information.

Activity-based Costing

A costing methodology that assigns overhead and indirect costs to specific activities, helping to more accurately determine the cost of products or services.

Customer Margin

The profit margin attributed to a particular customer, calculated by subtracting the costs associated with serving that customer from the revenue generated.

Activity-based Costing

Activity-based costing is a more precise method of product costing that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption.