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
