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Marginal cost and exact cost. If is the total cost producing a items, the marginal cost function approximates the exact cost of producing the x - lst item Similar statement can be made for Rx and P x Example 3. The total cost in dollars of producing a electric guitars is C x 100m - a Find the exact cost of producing the 51st guitar.
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Solve. The total cost in dollars of producing coffee machines is. A Find the exact cost of producing the 21st machine. Exact cost of 21st machine . B Use marginal cost to approximate the cost of producing the 21st machine. Approx. cost of 21st machine . The total profit in dollars from the sale of answering machines is.
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Oct 28, 2019 A cost driver is the factor that creates and drives the activity. Take machine hours as an example machine operating hours drive power costs and maintenance costs. The Activity-Based Costing aids the costing process of the company by extending the cost pools used to analyze overheads and linking indirect costs to specific activities.
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