If Total Revenue Is Increasing as Output Is Rising,then

question 18

Multiple Choice

If total revenue is increasing as output is rising,then

• A)marginal revenue must be equal to zero.
• B)marginal revenue must be greater than zero.
• C)marginal revenue must be less than zero.
• D)price must be increasing.
• E)price must be constant.

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Definitions:

Perpetual Inventory System

A method of inventory management that instantly logs sales or acquisitions of inventory using computerized point-of-sale systems and software for managing enterprise assets.

Inventory Valuation

The method used to calculate the cost associated with an inventory at the end of a financial period, affecting cost of goods sold and gross profit.

Gross Profit

The difference between sales and the cost of goods sold, indicating the basic profitability of a company's core business activities.

Ending Inventory

The value of goods available for sale at the end of the accounting period, calculated by adding purchases to beginning inventory and subtracting cost of goods sold.