opportunity cost refers to the satisfaction of ones want at the expense of another want while marginal cost is the addition to total cost as a result of increasing output by one unit.
it is the difference between the total cost of producing 8 units and 7 units of output.
marginal costing is recommended by IAS and absorption costing is not recommended by IAS,marginal costing is used for internal purposes and absorption costing is ysed for external purposes,in marginal costing the fixed production overheads are not calculated as a product cost and in absorption costing the fixed prodution overheads are calculated as product cost.
In economics, marginal cost is the change in total cost when the quantity produced changes by one unit. Generally speaking, marginal cost at each level of production includes any additional costs required to produce the next unit while absorption cost uses the total direct cost including variable and fixed overhead cost associated in manufacturing a product like the wages of the workers and raw materials in producing a product.
marginal costing considers only direct) materials,labour,expenses and variable factory overheads excluding fixed factory overheads but absorption considers (direct) materials ,labour,expenses,variable and fixed factory overheads.
difference between cost and costing
The main difference between standard cost and marginal cost is that in standard cost a target is set and in marginal cost there is no target set. Marginal cost is the change of the total cost due to the quantity produced.
marginal cost
The main difference between standard cost and marginal cost is that in standard cost a target is set and in marginal cost there is no target set. Marginal cost is the change of the total cost due to the quantity produced.
In economics, marginal profit is the difference between the marginal revenue and the marginal cost of producing an additional unit of output.
Opportunity cost is the value of the next best alternative foregone when a decision is made. Marginal cost is the additional cost incurred by producing one more unit of a good or service. In decision-making processes, understanding the relationship between opportunity cost and marginal cost is important because it helps in evaluating trade-offs and making efficient choices. By comparing the marginal cost of an action with the opportunity cost of not taking that action, decision-makers can determine the best course of action to maximize benefits and minimize costs.
Marginal cost is the additional cost incurred by producing one more unit of a good or service, while opportunity cost is the value of the next best alternative forgone. In decision-making processes, understanding the relationship between marginal cost and opportunity cost is important because it helps in evaluating whether the benefits of producing one more unit outweigh the costs, including the opportunity cost of not using resources for other purposes. By comparing marginal cost with opportunity cost, decision-makers can make more informed choices that maximize efficiency and resource allocation.
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Cost of debt is the original cost of borrowing including original interest rate Marginal cost of debt is new loan which extended from the previous one, the interest of which is called marginal cost of debt.
Real cost is the price which is real not a fake price
relation ship between average cost and marginal cost
The term marginal cost refers to the oppurtunity cost associated with producing one more additional unit of a good. Opportunity cost is a critical concept to economics - it refers to the value of the highest value alternative opportunity. For example, in examining the marginal cost of producing one more bushel of wheat, that number could be expressed as the dollar value of corn or other goods that could be produced in lieu of more wheat. Marginal benefit refers to what people are willing to give up in order to obtain one more unit of a good, while marginal cost refers to the value of what is given up in order to produce that additional unit. Additional units of a good should be produced as long as marginal benefit exceeds marginal cost. It would be inefficient to produce goods when the marginal benefit is less than the marginal cost. Therefore an efficient level of product is achieved when marginal benefit is equal to marginal cost.
nit cost is the average cost of making a product and cost per unit is the marginal cost