If Fixed Cost Is $5,000,and,at an Output of 3 Variable

question 134

Multiple Choice

If fixed cost is $5,000,and,at an output of 3 variable cost is $4,000,how much is average total cost at an output of 3?

• A)$1,333.33
• B)$3,000
• C)$4,500
• D)$9,000
• E)There is not enough information to determine ATC at an output of 3.

Grasp the principle of economic entity assumption and its implication for accounting practices.

Differentiate between historical cost and fair value, and understand their respective roles in financial reporting.

Understand the application of fair value principles to different types of assets.

Comprehend the fundamentals of Generally Accepted Accounting Principles (GAAP) and their application in financial reporting.

---

Definitions:

C Corporations

A type of corporation in the U.S. that is taxed separately from its owners.

Proprietorship

A business owned and run by one individual where there is no legal distinction between the owner and the business.

Taxed

Subjected to a financial charge or levy imposed by a government on income, transactions, or property.

Partnership

A partnership is a legal form of business operation between two or more individuals who share management and profits.