Total cost is the actual cost incurred in the production of a given product.
How to Calculate Total Cost.
Variable Cost – This is a type of cost that changes as the level of output change.
Fixed Cost – This type of cost is not dependent on the level of output hence, does not change.
Example:
The fixed cost of producing a product is $15 the production’s variable cost is $25.Calculate the total cost incurred in the production of this product.
Therefore,the total cost for production of this product is $40.
