Select the Entry Below to Record the Payment to Employees

question 72

Multiple Choice

Select the entry below to record the payment to employees for work performed during the pay period?

• A)debit Cash, and credit Accounts Receivable
• B)debit Salary Expense and credit Cash
• C)debit Salary Expense and credit Accounts Receivable
• D)debit Cash and credit Salary Expense

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Definitions:

Average Total Cost

the total cost of production divided by the number of units produced, reflecting the average cost per unit of output.

Average Variable Cost

The total variable costs of production divided by the number of units produced, indicating the variable cost per unit.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm or production process scales up, contrary to economies of scale where costs decrease.