The Average Cost of 20 Units of an Activity Is

question 193

Multiple Choice

The average cost of 20 units of an activity is the

• A) total cost of 20 units of the activity divided by 20.
• B) 20 divided by the total cost of 20 units of the activity.
• C) extra cost of 20 units of the activity divided by 20.
• D) reciprocal of the total cost of 20 units of the activity.
• E) change in total cost of the activity.

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Definitions:

Net Sales

The amount of sales revenue remaining after deducting sales returns, allowances, and discounts.

Sales Returns

Transactions where customers return previously purchased merchandise, possibly due to defects or dissatisfaction, impacting the seller's revenue.

Freight-in

The cost of shipping goods to the buyer's location, which is often included in the inventory cost.

Supplies Expense

The cost associated with the consumption of supplies utilized during an accounting period in the operation of a business.