Average Fixed Cost Equals

question 28

Multiple Choice

Average fixed cost equals

• A) total cost divided by output.
• B) total cost minus total variable cost.
• C) average total cost plus average variable cost.
• D) total fixed cost minus total variable cost.
• E) total fixed cost divided by output.

---

Definitions:

Inventory Increase

An upward adjustment in the book value of inventory, indicating a rise in the number of goods or materials on hand.

Noncash Investing

Transactions involving investment activities that do not involve immediate cash flows, such as exchanging one asset for another.

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of the entity, such as issuing shares or taking loans.

Investing Activities

transactions involving the purchase and sale of long-term assets and other investments, not related to core business operations.