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Term: Accounting -> Marginal cost
Term:

Marginal cost

Definition:

Marginal cost is a calculation showing the change in total cost as a result of a change in volume, e.g. if one more item of output increases the total cost by $25, the marginal cost is $25. It is usually useful to determine marginal cost because it can aid in determining if the rate of production should be altered.

Related terms:

Recharge

Retained earnings
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