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.

---

Definitions:

Lessee

The party in a lease agreement who pays the lessor for the use of an asset.

Lessor

The party in a lease agreement who owns the leased asset and grants the lessee the right to use that asset in exchange for periodic lease payments.

Deductibility

The ability of an expense or contribution to be subtracted from gross income, reducing the taxable income and tax liability.

Residual Value

The anticipated worth of an asset upon reaching the conclusion of its lifespan.