total cost =_+total variable cost
Answers
Total Cost=Total Fixed Cost+Total Variable Cost
Explanation:
Total Fixed Cost:These are the costs or expenses that are independent of the firm's or company's production level and are fixed or constant. These expenses have to be incurred by the firm irrespective of its production level.For example, rent for the land/building or lease expenses for the machinery have to be paid by the firm even if they decide to shutdown as these costs or expenses are non-recoverable.
Total Variable Cost:Variable costs are the expenses that vary with changes in production level.These costs mainly constitute factor or input costs which include labor,raw materials,equipment,machinery,capital investment etc.The employment of these factor inputs varies with changes in production level.If the firm decides to expand production level,then it will hire or employ more of the factors inputs and consequently the variable cost will increase and vise versa.
Therefore,Total cost of production in a certain period of time includes both the fixed and variable cost inits calculation.
Answer:
Explanation:
Total cost = Total fixed cost + Total variable cist