Final answer:
The average fixed cost curve is a downward-sloping curve that shows the relationship between average fixed cost and the quantity of output produced. Spreading the overhead means allocating the fixed costs to the cost objects based on a certain allocation method.
Step-by-step explanation:
The average fixed cost curve is a downward-sloping curve that shows the relationship between average fixed cost and the quantity of output produced. As the quantity of output increases, the average fixed cost decreases. Spreading the overhead means allocating the fixed costs to the cost objects based on a certain allocation method, such as direct labor hours or machine hours.