The marginal cost method of pricing considers the direct costs of producing and selling products for export.What costs are disregarded in this method?

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Quizplus · Accepted Answer

The marginal cost method only considers the direct costs of producing and selling products for export, which includes variable costs such as materials, labor, and shipping. Fixed costs, R&D expenses, and domestic overheads are not included in this method. Currency fluctuations and potential government regulations are also not directly factored in the calculation of the product's price. Weather forecasts, particularly El Nino, are also not relevant to this method of pricing.

The Marginal Cost Method of Pricing Considers the Direct Costs