Total Cost Is Calculated as

question 211

Multiple Choice

Total cost is calculated as

• A)average fixed cost plus average variable cost
• B)fixed cost plus variable cost
• C)the additional cost of the last unit produced
• D)marginal cost plus variable cost
• E)marginal cost plus fixed cost

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Definitions:

Net Working Capital

The difference between a company's current assets and current liabilities.

Variable Costs

Expenses that change in proportion to the activity of a business such as costs for raw material which increase as production increases.

After-Tax Salvage

The net value gained from selling an asset after accounting for taxes on the sale.