Identify Each of the Following as Either Internal or External

question 84

Essay

Identify each of the following as either internal or external users of accounting information.

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Definitions:

Average-Total-Cost

The cost per unit of output, calculated by dividing the total cost (fixed and variable costs) by the total quantity produced.

Marginal-Cost

The expense associated with producing one additional unit of a good or service, critical for decision-making in business and economic policy.

Economies of Scale

The cost advantage achieved by an increase in production, leading to a reduction in expenses per unit due to more efficient use of resources.

Long-Run Average Cost

The per-unit cost of production in the long term, where all inputs are variable.