Answer the Question on the Basis of the Following Cost

question 221

Multiple Choice

Answer the question on the basis of the following cost data. $\begin{array} { | c | c | c | } \hline \text { Output } & \text { Average Fixed Cost } & \text { Average Variable Cost } \\\hline 1 & \$ 50.00 & \$ 100.00 \\\hline 2 & 25.00 & 80.00 \\\hline 3 & 16.67 & 66.67 \\\hline 4 & 12.50 & 65.00 \\\hline 5 & 10.00 & 68.00 \\\hline 6 & 8.37 & 73.33 \\\hline 7 & 7.14 & 80.00 \\\hline 8 & 6.25 & 87.50 \\\hline\end{array}$ If the firm closed down in the short run and produced zero units of output, its total cost would be

• A) $0.
• B) $50.
• C) $150.
• D) $100.

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Definitions:

Bank Deposit

Money placed into a banking institution for safekeeping, which can include checking and savings accounts.

Bank Reconciliation

The process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement.