Marginal Cost Is Equal to Average Variable Cost

question 268

Multiple Choice

Marginal cost is equal to average variable cost

• A) when average variable cost is at its minimum value.
• B) when marginal cost is at its minimum value.
• C) when average variable cost is getting smaller.
• D) when average variable cost is getting larger.

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Definitions:

Comparability

A characteristic of accounting information that allows users to analyze two or more periods of financial data or companies to identify trends and differences.

Timeliness

The degree to which information, actions, or events occur at a suitable or opportune time, particularly in contexts requiring promptness.

Interest Expense

The amount of interest payable on any borrowed funds.

Notes Payable

A written promise to pay a certain amount of money, usually bearing interest, by a specific date; it is a liability on the balance sheet.