If Average Cost Is Decreasing

question 97

Multiple Choice

If average cost is decreasing,

• A) marginal cost equals average cost.
• B) marginal cost exceeds average cost.
• C) marginal cost is less than average cost.
• D) Not enough information is given.

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Definitions:

Current Liability

A financial obligation that is due within one year or within the normal operating cycle of the business.

Worksheet

A paper or spreadsheet used by accountants to prepare adjusting entries and to produce financial statements.

Trial Balance

A financial report that lists all accounts and their balances at a specific point in time, ensuring that debits equal credits.

General Ledger Accounts

Individual accounts in the general ledger that record all transactions of a company, used to prepare financial statements.