Total cost is the amount a firm receives for its output, and total revenue is the market value of the inputs a firm uses in production. Group of answer choices True False

False.

Explanation:

Total cost is the market value of the inputs a firm uses in production while total revenue is the amount a firm receives for its output.

Basically, all the amount of money spent in the production of a particular product is known as the total cost while the revenue refers to the total amount the product generates when sold.

Total cost is equal to the sum of total fixed costs and the total variable costs.

In Financial accounting, fixed cost can be defined as predetermined expenses in a business that remain constant for a specific period of time regardless of the quantity of production or level of outputs. Some examples of fixed costs in business are loan payments, employee salary, depreciation, rent, insurance, lease, utilities etc.

On the other hand, variable costs can be defined as expenses that are not constant and as such usually change directly and are proportional to various changes in business activities. Some examples of variable costs are taxes, direct labor, sales commissions, raw materials, operational expenses etc.

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