Total Cost Minus Total Variable Cost Equals

question 141

Multiple Choice

Total cost minus total variable cost equals:

• A) average fixed cost.
• B) total fixed cost.
• C) average variable cost.
• D) marginal cost.

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Definitions:

Gross Sales

The total revenue generated from sales of goods or services before any deductions are made for returns, allowances, or discounts.

Allocation

The process of assigning a cost or a group of costs to one or more cost objectives, in reasonable and realistic manner.

Direct Departmental Expense

Costs that are exclusively associated with a specific department and essential for its operation.

Sales Personnel

Employees responsible for selling a company's products or services, often working on commission and interacting directly with clients.