Marginal costing is defined as the amount of output, at any given volume, at which aggregate costs are changed if the volume of output is increased or decreased by one unit.

Question

Quizplus · Accepted Answer

Marginal costing is based on the principle that variable costs are directly proportionate to the volume of production. Therefore, any change in the volume of output by one unit will result in a change in the aggregate costs by the same amount.

Marginal Costing Is Defined as the Amount of Output, at Any