INTERVIEW QUESTIONS ACCOUNTS COST ACCOUNTING DETAILS

Question: What is marginal cost?

Answer: Marginal cost is nothing but Variable cost.

Marginal cost is nothing but Variable cost. Source: CoolInterview.com

Marginal Cost (MC)

The marginal cost of an additional unit of output is the cost of the additional inputs needed to produce that output. More formally, the marginal cost is the derivative of total production costs with respect to the level of output.

Marginal cost and average cost can differ greatly. For example, suppose it costs $1000 to produce 100 units and $1020 to produce 101 units. The average cost per unit is $10, but the marginal cost of the 101st unit is $20

The EconModel applications Perfect Competition and Monopoly emphasize the roles of average cost and marginal cost curves. The short movie Derive a Supply Curve (40 seconds) shows an excerpt from the Perfect Competition presentation that derives a supply curve from profit maximizing behavior and a marginal cost curve.
Source: CoolInterview.com

marginal cost means the cost is incurred production of another unit produced.
Source: CoolInterview.com

The accounting system in which variable cost are charged to the cost units and fixed costs of the period are written off in full against the aggregate contribution Source: CoolInterview.com

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