ECONOMICS

Detailed explanation-1: -Total cost refers to the total cost of ownership, where the costs of ongoing operations, maintenance, and repairs, and the benefit of any residual value are considered alongside the initial purchase price of an asset.

Detailed explanation-2: -I + M – R = TCO The variables chosen are initial cost (I), maintenance costs over 5 years (M), and the remaining value after 5 years of depreciation (R).

Detailed explanation-3: -The cost per unit is derived from the variable costs and fixed costs incurred by a production process, divided by the number of units produced.

Detailed explanation-4: -Cost accounting considers all input costs associated with production, including both variable and fixed costs. Types of cost accounting include standard costing, activity-based costing, lean accounting, and marginal costing.