Wilbur's Widgets, a Widget Company, Produces 100 Widgets

question 206

Multiple Choice

Wilbur's Widgets, a widget company, produces 100 widgets. Its average fixed cost is $5 and its total variable cost is $300. What is the total cost of producing 100 widgets?

• A) $300
• B) $305
• C) $500
• D) $800

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Definitions:

Accounting Controls

Processes and procedures implemented by a company to ensure the accuracy and integrity of its financial statements and to prevent fraud.

Internal Control Measures

Procedures and policies implemented by a corporation to ensure integrity of financial and accounting information, promote accountability, and prevent fraud.

Bank Accounts

Financial accounts maintained by individuals or entities with a banking institution, facilitating the deposit and withdrawal of funds.

NSF Fee

A charge issued by a bank against a customer's account for writing a check without sufficient funds to cover it, also known as a non-sufficient funds fee.