Which of the Following Costs Can Be Positive When Output

question 127

Multiple Choice

Which of the following costs can be positive when output is zero?

• A) average variable cost
• B) total variable cost
• C) marginal cost
• D) total fixed cost
• E) None of the above because when output is zero there are no costs.

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Definitions:

Logistics Cost Centers

Areas within a company's logistics operation that are responsible for specific expenses, helping in budgeting and financial tracking.

Least Cost Analysis

A method used to minimize costs of achieving a specific objective, commonly used in decision-making for choosing the most cost-effective option.

Short-Run Analysis

An examination of the performance or behavior of a firm or model over a short period, focusing on immediate costs and outcomes.

Cost Center Analysis

The process of evaluating the costs associated with a specific business unit or department, without directly attributing to revenue generation, aiming to optimize efficiency.