When Marginal Cost Is Less Than Average Variable Cost,average Variable

question 233

Multiple Choice

When marginal cost is less than average variable cost,average variable cost is falling.
Statement II: As output rises,average fixed cost declines.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false

---

Definitions:

Financing Activities

Transactions and events that affect the long-term liabilities and equity of a company, as reported in the cash flow statement.

Net Change In Cash

The difference in a company's cash and cash equivalents at the beginning and end of a financial period, reflecting its overall cash flow health.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a specific period, indicating the efficiency of its inventory management.

COGS

Cost of Goods Sold; the direct costs attributable to the production of the goods sold in a company.