The total cost (TC)of an item is calculated as TC = F + VX,where F is the
A)fixed cost during the period.
B)full cost during the period.
C)final costs during the period.
D)finite cost during the period.

Question

Quizplus · Accepted Answer

F is the fixed cost during the period, which is the cost that does not vary with the level of production or sales. The variable cost (VX) varies depending on the level of production, but the fixed cost remains constant. Therefore, option A is the correct choice.

The Total Cost (TC)of an Item Is Calculated as TC