Average Fixed Costs of Production

question 55

Multiple Choice

Average fixed costs of production

• A)remain constant.
• B)will rise at a fixed rate as more is produced.
• C)graph as a U-shaped curve.
• D)fall as long as output is increased.

Recognize the potential of technology to both facilitate and hinder the communication process.

Understand the implications of constant connectivity for individuals and organizations.

Recognize the importance of personal connection in communication and the potential issues with over-reliance on technology.

Understand the structure and essential components of a routine request in business communication.

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Definitions:

Fixed Manufacturing Overhead

Consistent expenses related to manufacturing that do not change with the level of production, such as factory rent and salaries of production supervisors.

Released

Term indicating that a product, information, or service has been made available to the public or a specific audience.

Absorption Costing

A costing method that includes all manufacturing costs, both variable and fixed, in the cost of a product.

Gross Margin

The difference between sales revenue and cost of goods sold, representing the fundamental profit derived from trading activities, before deduction of operating expenses.