Question

what is marginal cost

Answer 1

marginal cost is the extra or additional cost of producing one extra unit of output(finished good)

Answer 2

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Marginal costing system is very useful for internal purposes – decision making, planning and control.

Calculation of cost of sales, under marginal costing system, is very simple to understand.

Marginal costing system is very simple to operate as it does not require complex apportionments of overheads.