Question

Cost Formula:

Answer 1

[AI-generated answer — Bot GPT 3.5]

Cost formula is a mathematical expression that calculates the total cost of producing a product or providing a service. It is typically represented as follows:

Total cost = Fixed cost + Variable cost

Where:
- Fixed cost: Represents the cost that remains constant regardless of the level of production or sales. Examples of fixed costs include rent, salaries, and insurance.
- Variable cost: Represents the cost that varies with the level of production or sales. Examples of variable costs include raw materials, labor, and utilities.

The cost formula helps businesses understand how different factors affect their overall costs and allows them to make informed decisions about pricing, production levels, and profitability.