Total Cost | Definition, Formula & Calculation
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Total Cost | Definition, Formula & Calculation
562K viewsMay 15, 2015
Study.comAaron Hill
Total cost: The total cost C for a manufacturer during a given time period is a function of the number N of items produced during that period. To determine a formula for the total cost, we need to know two things. The first is the manufacturer's fixed costs. This amount covers expenses such as plant maintenance and insurance, and it is the same no matter how many items are produced. The second thing we need to know is the cost for each unit produced, which is called the variable cost. Suppose th
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