If Variable Cost at Each Output Level Doubles, Then:​

question 120

Multiple Choice

If variable cost at each output level doubles, then:​

• A)Average Total Cost doubles.
• B)Average Fixed Cost doubles.
• C)Marginal Cost remains unchanged.
• D)Marginal Cost doubles.
• E)Marginal Cost less than doubles.

---

Definitions:

Selling and Administrative Expenses

Costs related to selling a product and managing a business, excluding direct production costs.

Standard Cost

A predetermined cost of manufacturing, selling, or any business operation, which is used for budgeting and assessing performance.

Fixed Manufacturing Overhead

Refers to the consistent, non-variable costs associated with manufacturing a product, such as factory lease payments and salaries of permanent staff.

Direct Labor

The wages and other costs for labor that are directly involved in the manufacturing of a product or the provision of a service.