Match Each Item with the Correct Statement Below

question 167

Multiple Choice

Match each item with the correct statement below.
-assumes that all future cash inflows earn the minimum rate of return

• A)Payback period
• B)Accounting rate of return
• C)Net present value
• D)Internal rate of return
• E)Discount rate
• F)Annuity
• G)Post-audit
• H)Compounding of interest

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Definitions:

Average Variable Costs

an economic measure representing variable costs (expenses that change with production levels) averaged over a quantity of output.

Marginal Cost Curve

A graphical representation showing how the cost to produce one additional unit of a good changes as the production volume is increased.

Average Variable Cost Curve

A graph that displays how the variable cost per unit changes with changes in output level.

Marginal Cost Curve

A graphical representation that shows how the cost of producing one more unit of a good varies as the production level increases.