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Marginal cost is the change in the opportunity cost that arises due to the cost of producing an additional unit of product. It is an important tool of management accounting to make certain decisions. When it comes to writing an assignment on this subject, a student may require professional help.
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Marginal costing assignment help is available in UK, USA, UAE, Australia and Canada. We are helping students for a long time now with accounting and other assignments with the assistance of our group of the experienced and knowledgeable team. Before we tell you more about marginal costing assignment help, let’s try to understand some important aspect of marginal costing.
As discussed, marginal cost is the cost of producing an additional unit of good. It provides information to the management about the behaviour of costs and the result of such costs on the profitability of the business. In other words, marginal cost is the change in the total cost due to change in output of the production. A fixed cost remains the same where as the variable cost changes with the output level. This means cost of producing an additional unit of a good is the variable cost per unit.
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Decisions Taken On the Basis Of Marginal Cost
In a competitive market, an organization decides the quantity of units to be produced on the basis of the sale price and marginal cost. If the selling price is higher than the marginal cost, units are supplied and sold but if the marginal cost is higher than the selling price, it would not be profitable for the company to produce it. So, marginal cost plays a vital role in deciding the cost factor to produce any additional unit of good.
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