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

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Rakesh Sahu asked about 3 years ago

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Pankaj answered over 2 years ago

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.

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Data?1494421730 rohit awasthi answered about 3 years ago

Dear Friend > 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. Thanks

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