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.

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Definitions:

Overall Company Goals

Broad and general objectives that an organization seeks to achieve over a long-term period, guiding its mission and strategic direction.

Just-In-Time (JIT)

A production and inventory control system in which materials are purchased and units are produced only as needed to meet actual customer demand.

Customer Demand

The total amount of a product or service that consumers are willing to purchase at a given price level within a specific time period.

Just-In-Time (JIT)

A management strategy that aligns raw-material orders from suppliers directly with production schedules to reduce inventory costs and increase efficiency.