Asked by Chyna Forrester on Apr 25, 2024
Verified
Total costs fall into two general categories: ______.
A) tangible costs and intangible costs
B) fixed costs and variable costs
C) production costs and service costs
D) singular costs and dual costs
Tangible Costs
Explicit expenses or outlays that are easily quantifiable and often involve monetary transactions, such as equipment purchases, rent, and salaries.
Intangible Costs
Expenses or costs that are not easily quantifiable, including things like brand value, intellectual property, or goodwill.
Variable Costs
Costs that change in direct proportion to sales.
- Identify the categories of total costs and their impact on pricing.
Verified Answer
HM
Hailey Martinez8 days ago
Final Answer :
B
Explanation :
Fixed costs do not change with the level of production or service activity, while variable costs do change with the level of production or service activity. These are the two general categories into which total costs are divided.
Learning Objectives
- Identify the categories of total costs and their impact on pricing.