Inventory Is Usually Less Liquid Than Accounts Receivable Because Inventory

question 139

True/False

Inventory is usually less liquid than accounts receivable because inventory must first be sold before cash can be received.

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Definitions:

Average Fixed Cost

The total fixed costs of production divided by the quantity of output produced, illustrating how fixed costs per unit change with output levels.

MC

Marginal Cost, the cost of producing one additional unit of a good.

ATC

Average Total Cost, which is the total cost of production divided by the quantity of output produced.

AVC

Average Variable Cost; the per unit variable cost associated with producing a good or service.