## Quick Reference

A formula or equation that represents the way in which particular costs behave when plotted on a graph. For example, the most common cost function represents the total cost as the sum of the fixed costs and the variable costs in the equation *y* = *a* + *bx*, where *y* is the total cost, *a* is the total fixed cost, *b* is the variable cost per unit of production or sales, and *x* is the number of units produced or sold.

*Subjects:*
Business and Management.

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