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Hi,
From the question, I noticed they put “Marginal” just below the selling price.
Just to confirm is this a typo by BPP (should be material cost) or in the cost card we can actually show marginal cost?
Thanks.
(trying my luck here cause no reply at ACCA PM Performance Management Forums
It appears to be a typo by BPP. The correct term should be “material cost” instead of “marginal cost.” The cost card typically shows the breakdown of costs, including direct materials, direct labor, variable overheads, and fixed overheads. Marginal cost refers to the variable costs associated with producing an additional unit, whereas material cost specifically refers to the cost of materials used in production.
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