Question

Choose the item that best describes the economic characteristics of Marginal costs:

		A.The cost of including one extra child in a day-care center.
		B.The cost of merchandise inventory purchased five years ago. The goods are now obsolete.
		C.The cost of feeding 300 children in a public school cafeteria is $450 per day, or $1.50 per child per day.
		D.The management of a high-rise office building uses 3,000 square feet of space in the building for its own administrative functions. This space could be rented for $30,000.
		E.The cost of building an automated assembly line in a factory is $700,000; a manually operated assembly line would cost $250,000.

Answer 1

The defination of marginal costing is the change in the opportunity cost that arises when the quantity produced is incremented by one unit that is the cost of producing on more good unit that is marginal costing. If we go accordint to that option A is the corect One but it is not the characterstics of marginal costing one of the most important characterstics of Marginal costing is dividing the cost between varibale and fixed cost as we can see that from option c that they have given the variable cost for feeding one child per day. Therefore the option c is the correct one