Which of the following does total cost include?

Total cost consists of all expenses that a business incurs when producing goods or services. This includes both fixed costs and variable costs. Fixed costs are expenses that do not change with the level of production, such as rent or salaries, while variable costs fluctuate based on the quantity produced, like raw materials and direct labor.

By encompassing both categories, total cost provides a comprehensive understanding of what it truly costs to run the production process. This holistic view is essential for businesses when making decisions about pricing, budgeting, and determining the overall profitability of their operations.

The other options focus on either fixed costs or variable costs only, or they mention recoverable costs, which do not represent the total costs incurred in production. This makes understanding the distinction fundamental to grasping the total cost concept in economics.