Which of the following best describes total costs?

The best description of total costs is the sum of fixed and variable costs within a period. Total costs encompass all the expenses associated with production, which can be categorized into fixed costs and variable costs. Fixed costs remain constant regardless of the level of production, such as rent or salaries, while variable costs fluctuate with production levels, such as materials and labor directly tied to the units produced.

By combining fixed and variable costs, total costs provide a comprehensive view of the expenses incurred by a business over a specific period. This understanding is crucial for managers to make informed decisions regarding pricing, budgeting, and financial planning.

The other choices do not accurately capture the complete picture of total costs. Some focus only on specific types of costs (such as just production costs or solely direct costs), while others might describe costs that are necessarily unchanging, which does not reflect the overall cost structure in a dynamic production environment.