Cost Of Production

What is Cost Of production ?

  It is important to understand the cost of production. It help in business to figure out profit of production and also helps to how many units to be produce.

Different Types of Cost :-

Fixed Cost:- Cost that Don't Change with the amount of produce.

 e.g. Salary of Manager

Variable Cost:- Cost that change with the amount of production.
   e.g. Raw material

Total Cost:- Fixed Cost + Variable Cost

Marginal Cost:- Additional cost of one additional output.

   Marginal Cost = Change in total Cost ÷ Change in output