In Order to Be Classified as an Extraordinary Gain or Loss

question 16

Short Answer

In order to be classified as an extraordinary gain or loss, the item must be both (1) ____________ and (2) ________.

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Definitions:

Total Fixed Costs

The sum of all costs that do not change with the level of output, such as rent, salary, and insurance premiums.

Earrings

Jewelery pieces worn on the ear, typically fastened through a hole pierced in the earlobe or another external part of the ear.

Average Total Cost

The total cost of production divided by the quantity of output produced, representing the cost per unit.

Total Cost

The sum of all expenses incurred in the production of a good or service, including both fixed and variable costs.