If a Used $15,000 Automobile Used 100% for Business in the First

question 39

True/False

If a used $15,000 automobile used 100% for business in the first year (2011)fails the 50% business usage test in the second year,no cost recovery will be recaptured.

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Definitions:

Marginal Cost

The additional total cost incurred from manufacturing an additional unit of a product or service.

ATC

Average Total Cost, which is the total cost of production divided by the quantity of output produced, including both fixed and variable costs.

Marginal Cost

Marginal Cost is the increase in cost resulting from the production of one additional unit of a good.

Break-even Point

The production level where total revenues equals total expenses, and there is neither profit nor loss.