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Software Architecture and Design:

CS603 MIDTERM SOLVED PAPERS BY MOAAZ

In the lengthy run, there are no proper expenses. Fixed cost doesn’t shift contingent upon creation or deal levels, for example, lease, local charge, protection, or interest cost.

Complete Cost (TC) Total expense (TC) is the amount of generally fixed and variable expenses. It plots as an upward summation of the level line all-out fixed cost (TFC) bend and the vertical slanting absolute factor cost (TVC) bend.

CS603-Software Architecture and Design:

TC = FC + VC Average Cost or Average all-out cost (AC or ATC) Total expense per unit of result, found by separating absolute expense by the amount of result.

Normal all-out cost, generally truncated ATC, can be found in two ways. Since normal all-out cost is all-out the cost per unit of result, it tends to be found by partitioning complete expense by the amount of result.

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On the other hand, since the all-out cost is the amount of all-out factor cost and complete fixed cost, the normal absolute expense can be determined by adding normal variable expense and normally fixed cost.

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Normal expense (AC) is the upward summation of the AFC and AVC. Normal variable expense in addition to average fixed cost rises to average all-out cost.

AVC + AFC = ATC or AC Average variable expense (AVC) AVC is a financial aspects term to portray the all-out cost a firm can fluctuate (work, and so forth) partitioned by the all-out units of the result. AVC = TVC/Q Average fixed cost (AFC) AFC is complete; fixed cost is separated by the all-out units of the result.

CS603 MIDTERM SOLVED PAPERS-Software Architecture and Design:

AFC = TFC/Q AC = AFC + AVC, where normally fixed cost (AFC) is a descending inclining line as you are isolating a proper number by a rising number of result units.

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