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 Cost Accounting  |  Question 9 of 45    Print  
What is marginal cost?

  
Total Answers and Comments: 6 Last Update: June 28, 2008   
  
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 Best Rated Answer
Submitted by: T.Prasad
 

Marginal Cost is the cost with is incurred to produce one more extra unit.

Example to produce 100 units cost is Rs. 500/-

to produce the 101th unit the cost became Rs. 520/- (The cost to produce one more unit i.e, unit is Rs. 20/-)  The Rs. 20/- is called Marginal Cost.



Above answer was rated as good by the following members:
xissdilip
October 24, 2005 00:50:47   #1  
Bhaskar        

RE: What is marginal cost?
Marginal cost is nothing but Variable cost.
 
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March 28, 2006 09:31:48   #2  
dick Member Since: March 2006   Contribution: 1    

RE: What is marginal cost?

It is a varaible cost of production


 
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August 10, 2006 12:37:22   #3  
T.Prasad        

RE: What is marginal cost?

Marginal Cost is the cost with is incurred to produce one more extra unit.

Example to produce 100 units cost is Rs. 500/-

to produce the 101th unit the cost became Rs. 520/- (The cost to produce one more unit i.e unit is Rs. 20/-) The Rs. 20/- is called Marginal Cost.


 
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November 27, 2006 05:03:13   #4  
dandasrikanth        

RE: What is marginal cost?

marinal cost is nothing but u produce additional unit in production. that additional unit cost is called marginalcost


 
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December 26, 2006 08:27:51   #5  
andy        

marginal cost
Marginal Cost is variable cost AS LONG AS your fixed assets can handle the output. If that additional unit forces you to acquire more assets to handle it your marginal cost can be way out of line with your average variable cost.
 
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June 28, 2008 21:43:22   #6  
ngodza22 Member Since: June 2008   Contribution: 3    

RE: What is marginal cost?
it is a costing rule technique that excludes fixed cost from influencing decisions because they are said to be irrelevent cost.... simply because they are bound to be incurred even if a firm produce or doesn't produce eg rent

 
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