Table 6-D
the Table Below Shows How Total Cost Varies

question 20

Multiple Choice

Table 6-D
The table below shows how total cost varies with output in a factory producing watches:
$$\begin{array} { c c } \begin{array} { c } \text { Output } \\\text { (Per Week) }\end{array} & \begin{array} { c } \text { Tatal Cost } \\\text { (Dollars) }\end{array} \\\hline 0 & \$ 50 \\1 & \$ 60 \\2 & \$ 65 \\3 & \$ 69 \\4 & \$ 72 \\5 & \$ 95 \\6 & \$ 120\end{array}$$
-Refer to Table 6-D.If the output equals five watches per week, the average fixed cost and average variable cost of production equal ____ and ____, respectively.

• A)$9; $10
• B)$10; $9
• C)$45; $50
• D)$50; $45
• E)None of the above.

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Definitions:

Special Journals

Special journals are accounting journals designed for recording and detailing types of financial transactions that occur frequently within a business, such as sales, purchases, cash receipts, and cash disbursements.

Information Needs

The specific data and information required by individuals or organizations to make informed decisions.

Accounting System

A systematic process of recording, summarizing, analyzing, and reporting financial transactions of a business to provide an accurate financial picture.

E-Commerce

Refers to the buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions.