Which of the following would be a likely mathematical expression for Total Variable Cost?
A)Total Variable Cost = Production Volume × Revenue per Unit
B)Total Variable Cost = Material Cost per Unit × Labor Cost per Unit
C)Total Variable Cost = Total Cost - (Material Cost per Unit + Labor Cost per Unit)
D)Total Variable Cost = (Material Cost per Unit + Labor Cost per Unit) × Production Volume

Question

Which of the following would be a likely mathematical expression for Total Variable Cost? ​  ​
A)Total Variable Cost = Production Volume × Revenue per Unit 
B)Total Variable Cost = Material Cost per Unit × Labor Cost per Unit 
C)Total Variable Cost = Total Cost - (Material Cost per Unit + Labor Cost per Unit) 
D)Total Variable Cost = (Material Cost per Unit + Labor Cost per Unit) × Production Volume

Quizplus · Accepted Answer

Total Variable Cost is typically calculated as the sum of all variable costs associated with producing a certain volume of output. These variable costs usually include materials, labor, and other expenses that change with production levels. Therefore, the expression that best represents Total Variable Cost is D, which multiplies Material Cost per Unit and Labor Cost per Unit by Production Volume. Choice A represents Total Revenue, not Total Variable Cost. Choice B only accounts for Material Cost and Labor Cost but does not take into account other variable costs. Choice C subtracts Material Cost and Labor Cost from Total Cost, which does not necessarily reflect all variable costs.

Which of the Following Would Be a Likely Mathematical Expression