Question

What is meant by marginal cost?

Answer 1

Answer:the cost added by producing one additional unit of a product or service.

Explanation:

Answer 2

$\large { \fcolorbox{gray}{black}{ ✔\: \textbf{Verified \: answer}}}$

• 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.