The Manager of Greene Enterprises,Inc

question 36

Multiple Choice

The manager of Greene Enterprises,Inc.,recently estimated its average variable cost AVC) function to be Greene Enterprises faces total fixed costs TFC) of $300,000.At what level of output does average variable cost AVC) reach its minimum value for Greene Enterprises?

• A)800
• B)3,144
• C)3,800
• D)4,333
• E)51,672

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Definitions:

Operating Department Y

A specific division within an organization that is focused on core operational tasks related to producing goods or services.

Step-Down Method

A cost-allocation method used in cost accounting to allocate costs of departments to products or services.

Administration Department

The division within an organization responsible for overseeing general operations and administrative tasks.

Facilities Department

A department within an organization responsible for the management and maintenance of buildings, grounds, and other physical infrastructures to support operational needs.