Using the Diagram Below, Which of the Following Would Be

question 32

Multiple Choice

Using the diagram below, which of the following would be a likely mathematical expression for Total Cost? ​ ​

• A)Total Cost = Total Variable Cost × Fixed Cost
• B)Total Cost = Fixed Cost + Total Variable Cost
• C)Total Cost = Total Variable Cost + Total Revenue × Production Volume
• D)Total Cost = Fixed Cost + Total Variable Cost + Production Volume

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Definitions:

Weighted-Average Method

An inventory costing approach that assigns a weighted average cost to each unit of inventory, used in valuing the cost of goods sold and ending inventory.

Process Costing System

An accounting method used to allocate costs to units of product in continuous processes or industries where the products are indistinguishable from each other.

Equivalent Unit

A measure used in cost accounting to represent the amount of work done on partial units of production, making them comparable to fully completed units.

Cost Reconciliation Report

A report that reconciles the total costs incurred with the costs accounted for in a specific period, used in cost accounting to ensure accuracy.