Total cost is worked out by adding total variable costs to total:
AStock value
BFixed costs
CSales value
DSunk value
Answer & Solution
Correct answer: B. Fixed costs
1. Two categories make up the total.
2. One of them does not move with activity.
3. They are the total fixed costs.
_Source: OpenStax Principles of Managerial Accounting, Chapter 2, Building Blocks of Managerial Accounting._
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