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mojhsa [17]
3 years ago
6

The sum of the fixed and variable production costs is a company’s

Business
1 answer:
elena-s [515]3 years ago
6 0
<h2>Hello!</h2>

The answer is: d. total costs

<h2>Why?</h2>

The total costs are the sum of all the costs needed to produce a good or a service. It includes both fixed and variable production costs to show us the measure of a total cost.

We can calculate the total costs using the following formula:

TotalCosts(TC)=FixedCosts(FC)+VariableCosts(VC)

Fixed costs are all the constant costs. Fixed costs can be the salary of its workers (since they are based in hours worked), structure and good/actives insurance, taxes among others.

Variable costs are all the costs that can change thru the time, depending on the production volume. For example, if the production increases, the variable costs will increase too, also, if the production decreases, the variable costs will decrease too.

Have a nice day!

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