Asked by
Saone Trada
on Nov 04, 2024
Verified
Total cost is calculated as
A) the sum of total fixed cost and total variable cost.
B) the product of average total cost and price.
C) the sum of all the firm's explicit costs.
D) the sum of average fixed cost and average variable cost.
Total Cost
Total Cost encompasses all expenditures incurred by a business in the production of goods or services, including fixed and variable costs.
Total Fixed Cost
The sum of all costs that remain constant regardless of the level of production or output.
Total Variable Cost
The sum of all costs that vary with the level of output produced by a company.
- Enhance your comprehension of the mechanisms behind fixed, variable, and comprehensive expenses.
- Calculate average fixed costs, total variable costs, and total costs based on given data.
Verified Answer
WT
Learning Objectives
- Enhance your comprehension of the mechanisms behind fixed, variable, and comprehensive expenses.
- Calculate average fixed costs, total variable costs, and total costs based on given data.