All costs can be categorized as fixed and variable, as illustrated by the Cost Estimating Equation, TC = FC + V (X), where V is the linear variable cost per unit of activity, X.
Describe a benefit of breaking costs into their fixed and variable components (assuming the theory and formula of the Cost Estimating Equation above), using reasoned logic and illustrations. Also, please identify a problem/difficulty with breaking the costs into their fixed and linear variable components (assuming the theory and formula of the Cost Estimating Equation above), using reasoned logic and illustrations.