Items That Are Ready for Assembly and Retain Their Identities

question 172

True/False

Items that are ready for assembly and retain their identities when incorporated into another product are called component parts.

---

Definitions:

ATC

Average Total Cost; the total cost per unit of output incurred when producing goods or services.

AVC

Average Variable Cost, the cost that varies with the level of output, divided by the quantity of output produced.

Total Fixed Cost

The sum of all costs that do not change with the level of output produced; these costs are incurred even if production is zero.