Average Total Cost: Definition & Formula

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Which of the following statements best defines average total cost?

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1. Which of the following is the formula used to calculate average total cost?

2. Which of the following changes in the cost structure can change average variable cost?

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About This Quiz & Worksheet

Calculating the average total cost with the corresponding formula involves knowing a number of factors, including fixed costs and variable costs. This quiz will have you recall facts about the average total cost, as well as use your ability to calculate it.

Quiz & Worksheet Goals

In this quiz, you'll be assessed on your understanding of topics related to the ATC, including the following:

  • The definition of the average total cost
  • The average total cost formula
  • What can change an average variable cost
  • Determining an average total cost
  • Recognizing true statements about the average total cost

Skills Practiced

  • Reading comprehension - draw from the relevant information in the lesson on average total cost
  • Problem solving - use the formula to calculate an average total cost
  • Defining key concepts - accurately define the average total cost

Additional Learning

Looking to learn more about average total costs? In the lesson on Average Total Cost: Definition, Formula & Quiz, you can explore the following objectives:

  • Understand the costs that make up the average total cost
  • Know the average total cost formula
  • Examine examples of how to apply the average total cost formula
  • Know when average total cost is typically used
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