The Following Table Shows the Total Output, Variable Costs, Fixed

question 190

Multiple Choice

The following table shows the total output, variable costs, fixed costs, total costs, average total costs, and marginal costs of a firm, with some cells in the table intentionally left blank.

-Refer to the table above.What is the average total cost of producing 5 units of output?

• A) $10
• B) $22
• C) $11
• D) $30

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Definitions:

Materials Used

The quantity and cost of raw materials consumed in the production process, including both direct and indirect materials.

Manufacturing Overhead Account

An accounting term that aggregates all indirect costs associated with manufacturing a product.

Adjusting

The process of making modifications to certain accounts through adjusting entries to reflect the true financial status of a business at the end of an accounting period.

Work in Process Inventory

This refers to the materials, labor, and overhead costs for products that are in the production process but not yet completed.