top button
Flag Notify
    Connect to us
      Facebook Login
      Site Registration Why to Join

Facebook Login
Site Registration
Print Preview

What is Marginal Cost and Distinguish between Differential Cost and Marginal Cost?

+1 vote
2 views
posted Jun 14 by Prajwal C.m.

Share this question
Facebook Share Button Twitter Share Button Google+ Share Button LinkedIn Share Button Multiple Social Share Button

1 Answer

0 votes

Marginal Cost

Marginal Cost represents the increase or decrease in total cost, which occurs with a small change in output say, a unit of output. In cost accounting, variable costs represent marginal cost.

Distinguish between Differential Cost and Marginal Cost

The main point which distinguishes marginal cost and differential cost is that of change in fixed cost when volume of production increases or decreases by a unit of production. In the case of differential cost, variable as well as fixed cost i.e. both costs change due to change in the level of activity, whereas under marginal costing only variable cost changes due to change in the level of activity.

answer Jun 14 by Nway Nadar
Contact Us
+91 9880187415
sales@queryhome.net
support@queryhome.net
#470/147, 3rd Floor, 5th Main,
HSR Layout Sector 7,
Bangalore - 560102,
Karnataka INDIA.
QUERY HOME
...