Which of the Following Is TRUE Regarding the Accounts Supplies

question 17

Multiple Choice

Which of the following is TRUE regarding the accounts supplies payable and supplies expense?

• A)These account titles both mean the same thing and are used interchangeably.
• B)Supplies payable represents the cost of supplies bought on account but not yet paid for, while supplies expense represents the cost of the supplies which have been paid for.
• C)Supplies payable represents the cost of supplies bought on account but not yet paid for, while supplies expense represents the cost of supplies used to deliver goods or services to customers.
• D)Supplies expense represents the cost of supplies bought on account but not yet paid for, while supplies payable represents the cost of supplies used to deliver goods or services to customers.

---

Definitions:

Marginal Costs

refers to the cost associated with producing each additional unit of a product or service.

Average Total Cost

The total cost of production divided by the quantity produced, representing the per-unit cost of production, including both fixed and variable costs.

Diminishing Marginal Returns

A principle stating that as more of a variable input is added to a fixed input, beyond some point, the additional output produced from the additional input will eventually start to decrease.

Marginal Cost Curve

A graphical representation showing how the cost of producing one additional unit of a good changes as production volume changes.