In Problem 2, If Mr

question 16

Multiple Choice

In Problem 2, if Mr. Dent Carr's total costs were 2s² + 75s + 100, then if he repairs 25 cars, his average variable costs will be

• A) $250.
• B) $125.
• C) $129.
• D) $175.
• E) $87.50.

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Definitions:

Ending Inventory

The total value of all inventory, including raw materials, work-in-progress, and finished goods, at the conclusion of an accounting period.

Variable Costing

An accounting method that only assigns variable costs to inventory, treating fixed costs as period costs.

Variable Costing

A costing method where only variable production costs are included in product costs, with fixed overhead excluded from inventory valuation.

Unit Product Cost

The total cost to produce a single unit of product, including direct materials, direct labor, and manufacturing overhead.