-In the Above Table, When Output Is 8 Units, Average

question 133

Multiple Choice

-In the above table, when output is 8 units, average variable costs are

• A) $4.75.
• B) $3.50.
• C) $1.25.
• D) $4.50.

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Definitions:

Direct Materials

The raw materials that are directly traceable to the manufacturing of a product and are integral to its production.

Direct Labour

The amount of effort contributed by employees who work directly on manufacturing a product or delivering a service.

Factory Overhead

Indirect costs associated with manufacturing, including costs of utilities, maintenance, and factory equipment depreciation.

Variable Expenses

Costs that change in proportion to business activity or output levels, such as materials costs and utility expenses directly linked to production.