If Marginal Cost Is Above the Average Variable Cost, Then

question 172

True/False

If marginal cost is above the average variable cost, then average variable cost is decreasing.

---

Definitions:

Journal Entries

Recorded transactions in the financial books of a business, marking debits and credits in accounts affected by financial events.

Accounts Payable

An accounting entry that represents a company's obligation to pay off a short-term debt to its creditors or suppliers.

T Account

A graphical representation in accounting that resembles the letter "T", used to track the increases and decreases in accounts, making it easier to understand transactions.

Credit Side

The right side of an accounting ledger where increases in liabilities, equity, and revenue accounts are recorded.