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Q. What do you mean by Average Cost and Marginal cost?
Average Cost and Marginal cost: the average cost is the combined cost as explain above, but for the difference in the form of expression. The combined cost may be expressed as the total cost of all source of the capital and the average cost as the percentage of total composite cost of the total funds employed. It is thus the weighted average of the cost of the each component of funds employed by the firm. The weights are the proportion of the share of each component of funds by the employee. The marginal cost of capital is that average cost which is concerned with the additional funds raised by the funds. While taking capital budgeting and financing decision for an existing concern. It is the marginal cost of capital which the forms based and not the average costs.
V ariable Costs It is an expense that varies directly with changes in business activities for example the cost of raw materials rise and decreases as the volume of producti
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Can some one tell me the defination of Historical weights and how we calculate the historical weight?? And given the diffrence between Historical weight Vs Marginal weights??
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Advantages and disadvantage of pacipatory style of budgeting
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Explain about the debt policy Designing debt policy the debt policy of a firm is significantly influenced by the cost consideration. In designing financing policy, that is, p
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