Total fixed costs can be expressed as y = vx,where y = total variable cost,v= variable cost per unit of activity,and x = volume of activity.

Question

Quizplus · Accepted Answer

Total fixed costs are not variable with the volume of activity, but remain constant regardless of the level of production or sales. The correct formula for total cost would be y = f + vx, where f represents total fixed costs.

Total Fixed Costs Can Be Expressed as Y = Vx,where