When an Average Unit of Time Declines by a Constant

question 48

Multiple Choice

When an average unit of time declines by a constant percentage each time that the cumulative quantity of units produced is doubled, it is known as

• A)cumulative average time.
• B)incremental unit time.
• C)last unit time.
• D)relative unit time.
• E)cumulative unit time.

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Definitions:

Accrued Expenses

Expenses that have been incurred but not yet paid or recorded at the end of a reporting period.

Unearned Revenue

Money received by an individual or company for a service or product that has yet to be provided or delivered.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Rent Revenue

Income earned from leasing out property or space.