Total cost

Written by Fmi.Online Friday November 11, 2022
The meaning of this term varies slightly depending on the content. For example, when using it to define production costs, it measures the total fixed, variable, and overhead expenses associated with producing a good. 

Explanation :

This is a fundamental concept for business owners and executives because it allows them to track the combined costs of their operations. It allows the individuals to make pricing and revenue decisions based on whether total costs are increasing or decreasing. Furthermore, interested individuals can dig into the total cost numbers to separate them into fixed costs and variable costs, and adjust operations accordingly to lower overall costs of production. Management also uses this idea when contemplating capital expenditures. Investors, however, use this concept differently by looking at the funds needed to purchase an

In a nutshell :

Total fixed costs are the sum of all consistent, non-variable expenses a company must pay.
top-arrow

More Resources

Our Courses are designed to boost your career

Launch your career with Fmi’s Learning Pathway

Choose a learning pathway that best meets your needs and ambitions. Not sure which Fmi learning pathway is right for you? Explore our CareerBuddy videos for help and advice.

Investment banking pathway

Investment banking pathway

 Monthly Subscription
  • courses-clock60+ hours
  • courses-desktop9 courses

Investment banking offers many exciting career opportunities for students. From Financial Analysts to Investment Management, and Sales & Trading to a wide range of roles in infrastructure such as IT, Risk or Compliance. This pathway is designed to help you understand the investment banking industry, the roles investment banks are recruiting for, and most importantly, help you to develop the practical skills you need to get into the industry and your preferred role whether this be as part of a school leaver, intern or graduate program.

FMI Online Student join-student-img2 FMI Online Student
55,000+ students currently enrolled
₹750 / month Buy for ₹ 2999
Global markets pathway

Global markets pathway

 Monthly Subscription
  • courses-clock70+ hours
  • courses-desktop10 courses

Global markets provide a range of important products and services to corporates, institutions and governments worldwide from executing trades and managing risk to providing quality research content. A key business area in all investment banks, global markets offers a wide range of career paths for students to consider across all functions and at all levels from school leavers to internships through to graduate programs.

FMI Online Student join-student-img2 FMI Online Student
85,000+ students currently enrolled
₹750 / month Buy for ₹ 2999
Asset management pathway

Asset management pathway

 Monthly Subscription
  • courses-clock50+ hours
  • courses-desktop8 courses

The asset management industry is a global industry worth over 100 trillion US dollars. It plays a crucial role in managing the assets of retail and institutional investors, offering a wide range of exciting careers in doing so. If you’re looking to forge a career in asset management, our Asset management pathway is perfect for you. We help you build the skills all asset managers are looking for and explore everything you need to know about the industry and the wide range of roles available in the sector

FMI Online Student join-student-img2 FMI Online Student
100,000+ students currently enrolled
₹750 / month Buy for ₹ 2999
See all courses