The Sum of AVC and AFC Equals

question 138

Multiple Choice

The sum of AVC and AFC equals:

• A)total variable cost.
• B)economic profit.
• C)accounting profit.
• D)average total cost.
• E)marginal cost.

---

Definitions:

Job Cost Sheets

Documents that record and compile all costs associated with a specific job, including materials, labor, and overhead.

Job Order Costing

An accounting method that captures the costs associated with creating specific products or services, suitable for customized orders.

Job Lot

A small quantity of goods produced together because of a specific customer order or production decision.

Period Costs

Expenses that are not directly tied to the production process and are expensed in the period they are incurred.