As Output Increases, Average Cost Decreases Continually Because

question 81

Multiple Choice

As output increases, average cost decreases continually because

• A) average variable cost per unit is increasing.
• B) average fixed cost per unit is decreasing.
• C) total variable cost is increasing.
• D) total variable cost is decreasing.
• E) total fixed cost is reducing.

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Definitions:

Gross Monthly Earnings

The total amount of income earned in a month before any deductions such as taxes or retirement contributions.

Commission Rates

The percentage or fixed fee that a salesperson receives as compensation for their sales contributions.

Sales Total

The aggregate amount from all sales transactions within a given period.

Account Receivable

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.