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Marginal Cost
Marginal cost is the change in a firm's cost of production. It is related to a unit change in its output, or the added cost of producing the next unit. The marginal cost function can be established by taking the first derivative of the total cost function, and the marginal cost for a unit of production can be getting through substituting that quantity into the marginal cost function.
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DIFERENCE BETWEEN MARGINAL AND DIFFERENTIAL COSTING
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This is defined as an actual amount paid or incurred, as opposed to estimated cost or standard cost. In contracting, actual costs amount includes direct labor, direct material, and
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