ECONOMICS

COST ACCOUNTING

VARIABLE COSTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Additional cost associated by producing one additional unit of product.
A
Fixed Costs
B
Average Costs
C
Marginal Costs
D
Emplicit Costs
Explanation: 

Detailed explanation-1: -What Is Marginal Cost? Marginal cost is the cost to produce one additional unit of production. It is an important concept in cost accounting as marginal cost helps determine the most efficient level of production for a manufacturing process.

Detailed explanation-2: -Marginal cost represents the incremental costs incurred when producing additional units of a good or service. It is calculated by taking the total change in the cost of producing more goods and dividing that by the change in the number of goods produced.

Detailed explanation-3: -Marginal costs are the costs associated with producing an additional unit of output. It is calculated as the change in total production costs divided by the change in the number of units produced. Marginal costs exist when the total cost of production includes variable costs.

Detailed explanation-4: -Marginal cost is the expense incurred by a business for producing an additional unit of a good or service.

Detailed explanation-5: -Example of marginal cost Marginal cost is calculated by dividing the increase in production costs by the increase in unit output. For example, a company starts by paying $100 to manufacture 100 product units. It then pays an extra $50 to manufacture an extra 100 product units.

There is 1 question to complete.