Average Variable Cost

question 11

Multiple Choice

Average variable cost:

• A) first decreases then increases as output expands.
• B) remains unchanged as output expands.
• C) always increases as output increases.
• D) always decreases as output expands.

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Definitions:

Ledger

A book or collection of accounts in which account transactions are recorded.

Trial Balance

A bookkeeping report that lists the balances in each of an organization's general ledger accounts at a specific point in time.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to ensure that total debits equal total credits.

Journal Entry

A record in the books of accounts that represents each business transaction, detailing the accounts and amounts to be debited and credited.