Total cost is the actual cost incurred in the production of a given product.

#### How to Calculate Total Cost.

Variable Cost – This is a type of cost that changes as the level of output change.

Fixed Cost – This type of cost is not dependent on the level of output hence, does not change.

**Example: **

The fixed cost of producing a product is $15 the production’s variable cost is $25.Calculate the total cost incurred in the production of this product.

Therefore,the total cost for production of this product is $40.