The correct answer would be option A, Fixed Cost plus Variable Cost.
The total cost of a factory or other production site is determined by fixed cost plus variable cost.
Explanation:
There are two main types of costs incurred while running a business. One is fixed cost and the other is variable cost.
Fixed costs are the costs that remain fixed in a period of time regardless of either your business is making profits or not, or your sales reach the target or not. Fixed costs have to be paid at any cost. Rent, Wages, Salaries, Insurance Payments, etc are fixed costs/
Variable costs are the costs that vary with the increase or decrease of the production of the product, or sales of the product, or the position of the business, or usage of something. Electricity Bills, raw materials, advertising expense, etc are variable costs.
Total costs are derived by adding all fixed costs and all variable costs incurred in the business.
Learn more about Fixed and Variable Costs at:
https://brainly.com/question/6838514
#LearnWithBrainly
