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Types of Costs

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Determine the difference between Total Variable Costs (TVC), Average Variable Costs (AVC) and Marginal Costs (MC).

What do we mean by these different types of costs? How are they calculated? What would be an example of each?

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The response address the queries posted in 708 words with references.

//Below, I have discussed the different types of costs and their importance in an Organization. The differences between these kinds of costs have also been discussed as under. First, I begin with talking about the Total Variable Costs (TVC), Average Variable Costs (AVC) and Marginal Costs (MC) and then, discussing over the difference between them.//

Types of Costs

Different Types of Costs

The different types of costs of production play a vital role in determining the success of an organization. Here, three important types of costs- Total Variable Costs (TVC), Average Variable Costs (AVC) and Marginal Costs (MC) are discussed.

Difference: The Total Variable Costs differs from the Average Variable Costs as the former is basically a difference between the total costs and fixed costs of a firm. On the other hand, the Average Variable Costs is simply the variable cost per unit of output. Finally, the Marginal costs differs from the above two costs as it is the extra cost incurred on the production of an additional unit.

Total Variable Costs (TVC): These ...

Solution Summary

The response address the queries posted in 708 words with references.

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