Total cost includes...,,.

FIXED COST :       The cost that  has no change with the production is called fixed  cost.The cost that doesn’t depend upon the production .Fixed cost generally stands for ‘FC’.   

        Example1: Factory rent

        Explanation:Here we have to pay the factory rent even though there is no production because it is fixed in nature.

        Example2: Salaries to employee’s

        Explanation:we want to pay salaries to the employees even though there is no production because it is fixed in nature.

VARIABLE COST:  The cost that changes with the change in the production is called variable cost .The cost that depends upon the production.Variable cost generally stands for ‘VC’. 

        Example1:Purchase of Raw  materials 

        Explanation: we want to purchase raw materials when there is a need for  production because it is variable in nature.

       Example2:Sales commission

       Explanation:we want to pay sales commissions to sales persons when there is products only.

TOTAL COST:  FIXED COST +VARIABLE  COST 

       TC=FC+VC