The sum of variable costs and fixed costs is called?
Correct answer: A. total costs
- A. total costs
- B. overhead costs
- C. markup costs
- D. both a and b
Explanation
Total cost is calculated by adding fixed costs and variable costs. Overhead costs usually refer mainly to indirect operating costs, so they are not necessarily the full sum.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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