Average Variable Cost Can Be Calculated Using Any of the Formulas

question 85

Multiple Choice

Average variable cost can be calculated using any of the formulas below except

• A)TVC/Q.
• B)(TC - FC)/Q.
• C)Δ(TC - FC)/ΔQ.
• D)(TC/Q)- AFC.

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Definitions:

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of a business, whichever is longer.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations by comparing current assets to current liabilities.

Current Ratio

A liquidity ratio calculated as current assets divided by current liabilities, indicating the ability of a company to pay short-term obligations.

Current Liabilities

Debts or obligations that a company expects to pay off within one fiscal year, including accounts payable, short-term loans, and accrued expenses.