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Cost Formulas Overview

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nischayagarwal008
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5 views2 pages

Cost Formulas Overview

Uploaded by

nischayagarwal008
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Cost Chapter formulas

Total Fixed Cost


• TFC = TC - TVC
• TFC = AFC * OUTPUT
TFC = TC AT 0 OUTPUT

Total Variable Cost


TVC = TC - TFC
TVC = AVC * OUTPUT
TVC =∑ MC

Total Cost
TC = TVC + TFC
TC = AC * OUTPUT
TC = ∑ MC +TFC
Average fixed cost
AFC = TFC / OUTPUT
AFC = AC - AVC
Average variable cost
AVC = TVC / OUTPUT
AVC = AC – AFC
Average total cost or Average Cost
Cost Chapter formulas

AC = TC / OUTPUT
AC = AVC+AFC
Marginal Cost
Δ TC
MC= Δ Q
MCn = TCn – TCn-1
MCn = TVCn – TVCn-1

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