Total fixed cost (TFC): Fixed costs are those cost which must be incurred by a firm even if these is no production i.e. these cost are independent of output level. In the short run, the total amount of cost, which is incurred in hiring the fixed factors of production, remains constant.
TVC: Variable costs are those cost which are incurred on the employment of variable factors of production whose amount varies with the changes in the output level. Thus the total variable costs are changed in the short run. Variable costs are also called prime or direct cost.
TC: Total cost of a business is the sum of its total variable costs and total fixed costs.
Thus: TC= TFC + TVC
In other word, total cost refers to the sum of all costs that are incurred in a particular period of time during the production process of particular quantities of product.
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