Average Total Cost Is Defined As

question 70

Multiple Choice

Average total cost is defined as:

• A)Total cost divided by total output
• B)Total cost divided by price
• C)Variable cost divided by total output
• D)Variable cost divided by price

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Definitions:

Perpetual Inventory System

A method of accounting for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management.

Sales Revenue

Sales revenue refers to the income received from the sale of goods or services before any costs or expenses are deducted, serving as a primary source of business income.

Retail Inventory Method

An accounting technique used by retailers to estimate inventory costs by applying a consistent gross margin percentage to the retail price of the goods.

Shrinkage

The reduction in inventory mainly due to shoplifting, employee theft, or other errors.