Rushing River Boats Has the Following Data in Its Social

question 55

Multiple Choice

Rushing River Boats has the following data in its Social Security tax payable General Ledger account: It is a monthly schedule depositor.What entry should appear in the General Ledger to reflect the tax remittance on February 15?

• A) Credit $420
• B) Debit $420
• C) Credit $1,620
• D) Debit $1,620

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Definitions:

Average Variable Cost (AVC)

The variable cost of production divided by the number of units produced, reflecting the cost per unit excluding fixed costs.

Average Fixed Cost (AFC)

A firm’s total fixed cost divided by output (the quantity of product produced).

Marginal Cost (MC)

The extra (additional) cost of producing 1 more unit of output; equal to the change in total cost divided by the change in output (and, in the short run, to the change in total variable cost divided by the change in output).

Total Cost

The sum of all costs incurred by a business in the production of goods or services, including both fixed and variable costs.