Question

Total cost is calculated as:

Options

• \[ \text{Total Cost} = \text{Fixed Cost} + \text{Variable Cost} + \text{Semi-Variable Cost} \]

• \[ \text{Total Cost} = \text{Variable Cost} \times \text{Semi-Variable Cost} \]

• \[ \text{Total Cost} = \frac{\text{Fixed Cost} + \text{Variable Cost}}{2} \]

• \[ \text{Total Cost} = \text{Fixed Cost} - \text{Variable Cost} \]

Answer 1

Total cost is the sum of fixed, variable, and semi-variable costs. All three cost types must be added together to arrive at the total cost of a product, which then forms the basis for pricing.