ECONOMICS

Detailed explanation-1: -Marginal costing is a very valuable decision-making technique. It helps management to set prices, compare alternative production methods, set production activity levels, close production lines and choose which of a range of potential products to manufacture.

Detailed explanation-2: -Marginal cost is the cost of one additional unit of output. The concept is used to determine the optimum production quantity for a company, where it costs the least amount to produce additional units. It is calculated by dividing the change in manufacturing costs by the change in the quantity produced.

Detailed explanation-3: -The correct answer is: B. Marginal Cost is the incremental cost of one unit. Reason: Marginal cost is the additional cost incurred in producing one extra unit of output.

Detailed explanation-4: -Marginal cost is the expense incurred by a business for producing an additional unit of a good or service. It is calculated by taking the total cost of producing additional products and dividing it by the total number of extra units produced.