The term "full and marginal costs" refers to two important cost concepts in business administration and cost accounting. Full costs include all costs that can be attributed to a product or service, including fixed and variable costs. Marginal costs, on the other hand, are the additional costs incurred in producing one more unit.
• Cost recording: Capturing and categorizing all relevant costs
• Cost allocation: Assigning costs to cost centers and cost objects
• Cost analysis: Detailed analysis of cost structure and development
• Marginal cost calculation: Automatic calculation of marginal costs for various production quantities
• Contribution margin calculation: Determination of contribution margins based on marginal costs
• Scenario analysis: Simulation of different production scenarios and their impact on full and marginal costs
• Reporting: Generation of cost reports for management and controlling
• Cost forecasting: Prediction of future costs based on historical data and trends
• Full costs: Material costs + Manufacturing costs + Administrative costs + Distribution costs
• Marginal costs: Additional material costs for one more unit of production
• Break-even analysis based on full costs vs. marginal costs
• Pricing considering full and marginal costs
• Decision on production expansion based on marginal cost analysis
• Optimization of production quantity by comparing marginal costs and marginal revenue
