For Each of the Following Cost Functions,if Possible,find Minimum AC

question 43

Essay

For each of the following cost functions,if possible,find minimum AC and minimum AVC.
a.TC = 20,000 + 10 Q
b.TC = 18,000 + Q + 0.2 Q²

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Definitions:

Fixed Overhead Cost Variance

The difference between the actual fixed overhead costs incurred and the expected (or budgeted) fixed overhead costs.

Variable Overhead Efficiency Variance

A calculation that shows the cost impact of the difference between the actual and expected efficiency in using variable overhead resources in production.

Relevant Information

Data that can influence a decision-making process because it is pertinent and has a bearing on the situation.

Actual Results

The real outcomes achieved by an organization, which can be measured and compared against its goals or forecasts.