The sum of the fixed costs and the variable costs of producing a certain number of units is called the
A) cost of goods sold.
B) equilibrium cost.
C) total cost.
D) breakeven cost.
E) total operating expense.

Question

Quizplus · Accepted Answer

The sum of fixed and variable costs is known as total cost. Cost of goods sold only includes variable costs directly associated with producing the goods, not fixed costs. Equilibrium cost refers to the price point at which supply and demand are equal. Breakeven cost is the point at which total revenue equals total costs, so it is related but not a direct answer. Total operating expense includes all expenses related to running a business, not just production costs.

The Sum of the Fixed Costs and the Variable Costs