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marginal cost
by 趙永祥 2015-06-12 07:16:39, 回應(0), 人氣(686)



 
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Term of the Day

Date: Thursday, June 11, 2015

marginal cost

The increase or decrease in the total cost of a production run for making one additional unit of an item. It is computed in situations where the breakeven point has been reached: the fixed costs have already been absorbed by the already produced items and only the direct (variable) costs have to be accounted for.

Marginal costs are variable costs consisting of labor and material costs, plus

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Usage Example
The company couldn't afforded the marginal cost of producing anymore basketballs, they were now looking at raising prices so that they could afford to make more.
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