Bill Is an Accountant for a Small Machine Shop

question 121

Multiple Choice

Bill is an accountant for a small machine shop. His boss has asked him to calculate the shop's total fixed cost. Which method will get Bill the correct answer?

• A) c and d.
• B) Calculating the product of average total cost and quantity
• C) Determining what the shop would pay for if they produced zero output
• D) Subtracting the total variable costs from the total costs
• E) Subtracting total variable costs from total revenue

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