Examlex
Which of the following is an operational definition of "thriftiness"?
Average Variable Cost
The total variable costs (such as labor and materials) divided by the quantity of output produced.
Average Total Cost
The total cost of production (fixed plus variable costs) divided by the total quantity of output produced, indicating the cost of producing each unit of output.
Variable Costs
Costs that vary directly with the level of production or output, such as materials and labor costs.
Fixed Costs
Costs that do not change with the amount of goods or services produced by a business over a certain period, such as rent, salaries, and insurance premiums.
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