Average Cost Equals

question 176

Multiple Choice

Average cost equals

• A)change in total cost/change in quantity.
• B)total cost/quantity.
• C)total cost - total variable cost.
• D)total cost - total fixed cost.

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Definitions:

Receivables Balance

The complete amount of financial liabilities customers hold towards a company for supplied goods or services awaiting payment.

Accounts Receivable Period

The amount of time it takes for a company to collect payment from its customers after a sale has been made.

Cost of Goods Sold

Represents the direct costs attributable to the production of the goods sold by a company.