In a Common-Size Balance Sheet, Each Item on the Balance

question 75

Multiple Choice

In a common-size balance sheet, each item on the balance sheet is typically expressed as a percentage of

• A) Assets
• B) Net income
• C) Equity
• D) Sales revenue

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Definitions:

AFC

Average Fixed Cost, the fixed cost per unit of output, calculated by dividing total fixed costs by the quantity produced.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the total quantity of output produced.

Average Fixed Cost

The fixed cost per unit produced, calculated by dividing total fixed costs by the quantity of output produced.

Marginal Cost

The charge for generating one more unit of a good or service.