Total cost refers to
A)the sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold.
B)the total expense incurred by a firm in producing and marketing a product; the sum of fixed cost and variable cost.
C)the expense incurred by a firm in producing and marketing a product is referred to as overhead.
D)the average amount of money received for selling one unit of a product or simply the price of that unit.
E)the sum of the expenses of the firm deducted from the revenue generated by the sale of the product.

Question

Quizplus · Accepted Answer

Total cost refers to the sum of fixed cost and variable cost, which are the expenses incurred by a firm in producing and marketing a product. It includes both the direct and indirect costs associated with production, such as equipment, labor, and raw materials. Fixed costs, such as rent and salaries, do not change with the quantity of a product that is produced, whereas variable costs, such as materials and utilities, increase as production increases. Therefore, total cost is the sum of these two types of costs.

Total Cost Refers to