At Any Given Volume, Average Fixed Costs Must Equal Average

question 295

True/False

At any given volume, average fixed costs must equal average variable costs.

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Definitions:

Capital Dividend

A dividend paid to shareholders from a company's capital rather than its earnings, often tax-exempt for the receiver.

Dividend Policy

The strategy a company uses to decide how much it will pay out to shareholders in dividends.

Legal Requirements

Mandates established by law that must be followed by individuals, organizations, or businesses.

Property Dividend

A dividend paid to shareholders in the form of assets other than cash, typically securities or physical assets owned by the company.