If Marginal Cost Is Above the Average Variable Cost, Then

question 172

True/False

If marginal cost is above the average variable cost, then average variable cost is decreasing.

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Definitions:

T Account

A graphical representation used in double-entry bookkeeping to show the increases and decreases in an account, characterized by a T shape.

Account Title

An account title is the name given to an account in the general ledger that identifies where transactions are recorded, such as "Revenue," "Accounts Payable," or "Cash."

Credit Side

The credit side of an account is where increases in liabilities, equity, and revenue accounts are recorded, as well as decreases in asset and expense accounts.

Dividends Account

An account used in bookkeeping to track dividends declared by a company to be paid out to its shareholders.