BUISENESS MANAGEMENT
BUSINESS PLANNING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Total costs minus total variable costs
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Total fixed costs plus total variable costs
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Total costs plus total variable costs
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Total fixed costs minus total variable costs 5
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Detailed explanation-1: -Consequently, total cost is fixed cost (FC) plus variable cost (VC), or TC = FC + VC = Kr+Lw.
Detailed explanation-2: -First, add up all of your production costs. Make sure to be clear about which costs are fixed and which ones are variable. Take your total cost of production and subtract your variable costs multiplied by the number of units you produced. This will give you your total fixed cost.
Detailed explanation-3: -Total Fixed Cost TFC:-The total amount of money spends on fixed factors of production is called fixed cost.It can be obtained by subtracting total variable cost from total costTFC = TC-TVCTotal Variable Cost TVC:-The total amount of money spends on variable factors of production is called total variable cost.
Detailed explanation-4: -tc stands for total cost, tvc for total variable cost and tfc for total fixed cost. tc is the sum of tvc and tfc . that means, tc = tvc+tfc. at zero level of output, tc= tfc.