To construct the Total Cost line on a cost-volume-profit graph,plot ________ and then plot ________.
A) mixed costs; step costs
B) step costs; mixed costs
C) fixed costs; variable costs
D) fixed costs; fixed costs plus variable costs

Question

Quizplus · Accepted Answer

To construct the Total Cost line on a cost-volume-profit graph, you first plot the fixed costs, which are constant regardless of volume. Then, you plot the total costs, which include both fixed costs and variable costs, showing how total costs increase with volume.

To Construct the Total Cost Line on a Cost-Volume-Profit Graph,plot