[shresthashraddha]

In cost classification & Behaviour chapter’s quiz, Question number 2, it is solved as :

“Therefore the total cost will be = $170000- (2000*$5)
= $170000- (10,000)
= $160,000.”

As in my understanding, Total cost = Fixed cost + Variable cost

Whereas, in above solved problem, I can see Total cost = Fixed cost – Variable cost.

Can you please explain me this solution?

Thank You.

[shresthashraddha]

If Total cost = Fixed cost + Variable cost.

But in Quize, question number 2, there is a solution where Total cost = Fixed cost – variable cost.

What is the reason for that?

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