Exhibit 7-7
-Total cost is calculated as
A) FC + MC
B) FC / MC
C) (VC + F
C) / MC
D) VC + FC
E) VC $\times$ output

Question

Exhibit 7-7 
-Total cost is calculated as
A) FC + MC 
B) FC / MC 
C) (VC + F
C) / MC 
D) VC + FC 
E) VC $\times$ output

Quizplus · Accepted Answer

Total cost is calculated as the sum of variable costs (VC) and fixed costs (FC), therefore option D is the correct choice. Options A and C include only the variable costs and do not account for fixed costs. Option B divides fixed costs by variable costs, which is not a meaningful calculation in this context. Option E does not make sense as it includes random characters.

Exhibit 7-7 -Total Cost Is Calculated as A) FC ×\times×

Exhibit 7-7
-Total Cost Is Calculated as
A) FC $\times$