ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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are set by sellers without regard to buyers
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reflect the relative scarcity of goods and services
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are determined by give and take in the marketplace
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both b and c
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Detailed explanation-1: -It is also known as incremental cost. Marginal costs are based on production expenses that are variable or direct-labor, materials, and equipment, for example-not on fixed costs the company will have whether it increases production or not.
Detailed explanation-2: -P/V ratio = Contribution/ Sales. It is used to measure the profitability of the company. Contribution is the excess of sales over variable cost. So basically P/V ratio is used to measure the level of contribution made at different volumes of sales.
Detailed explanation-3: -Marginal costing is a system in which variable cost are charged to the cost unit and fixed cost of the period is written off in full against the aggregate contribution. Marginal costing provides the information to the management in decision making. This is also known as variable costing.
Detailed explanation-4: -What Is Marginal Cost? In economics, the marginal cost is the change in total production cost that comes from making or producing one additional unit. To calculate marginal cost, divide the change in production costs by the change in quantity.