A company's total costs are calculated by
A) subtracting total fixed costs from total variable costs.
B) subtracting total variable costs from total fixed costs.
C) adding total fixed costs to total variable costs.
D) subtracting total fixed costs and total variable costs from sales.

Question

Quizplus · Accepted Answer

Total costs are the sum of both fixed costs and variable costs. Therefore, we need to add total fixed costs to total variable costs to calculate the company's total costs.

A Company's Total Costs Are Calculated by