The Receivable That Is Usually Evidenced by a Formal Instrument

question 40

Multiple Choice

The receivable that is usually evidenced by a formal instrument of credit is a(n)

• A) trade receivable.
• B) note receivable.
• C) accounts receivable.
• D) income tax receivable.

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Definitions:

MC

Marginal Cost refers to the additional total cost incurred from the production of one more unit of a product or service.

Marginal Costs

Marginal Costs represent the change in total cost that arises from producing one additional unit of a good or service.

Average Variable Costs

The cost per unit of variable inputs divided by the total output, indicative of the average amount spent on variable costs per unit of output produced.

TFC

Total Fixed Cost, which is the sum of all costs that remain constant regardless of the level of production or output.