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Marginal Costing

This topic has 2 replies, 3 voices, and was last updated 3 years ago by Ken Garrett.

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August 18, 2021 at 6:50 pm #631988
James124
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Marginal Cost per unit will include variable non-production cost per unit?
August 18, 2021 at 8:00 pm #631992
maximus07
Participant
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Hey James, according to me, Marginal cost of production has only production variable costs which are direct costs and variable production overheads.
Professor will guide you further.
August 19, 2021 at 6:29 am #632005
Ken Garrett
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Marginal cost of production (think ‘marginal’=’extra’) is the cost caused by making one more unit.
Normally, for a unit, this is the cost of material per unit, plus the cost of direct labour per unit plus the variable production overheads per unit.
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