Which One of the Following Statements Is False

question 112

Multiple Choice

Which one of the following statements is false?

• A)Average total cost is total cost per unit of output.
• B)Average fixed cost plus average variable cost equals average total cost.
• C)Marginal cost is the increase in total cost resulting from a one-unit increase in output.
• D)Total cost equals fixed cost plus average cost.
• E)Marginal cost depends on the amount of labour hired.

---

Definitions:

Intangible Assets

Non-physical assets possessed by a business, such as copyrights, patents, trademarks, and goodwill, that have value and can be used to produce revenue.

Fair Value

The income expected from liquidating an asset or the cost associated with delegating a liability in an organized market interaction at the measurement moment.

Goodwill

The intangible asset that arises when a company is acquired for more than the fair value of its net identifiable assets, representing reputation, brand, and other non-physical values.

Journal Entries

These are records of financial transactions in the accounting system, made in chronological order.