Average total cost is found by dividing

A) variable cost by output.
B) output by variable cost.
C) total cost by output.
D) output by total cost.

Average Total Cost

The average cost for each unit produced, calculated by dividing the total production expenses by the quantity of units made.

Variable Cost

Costs that change in proportion to the level of production or sales, such as raw materials and labor expenses.

Total Cost

The sum of fixed and variable costs incurred by a firm in the production of goods or services.