... Marginal CostofPublic Funds Raising publicfunds to undertake investment projects involves three types of costs:• collection costs: costs of running the tax office;• compliance costs: costs ... Summary:• Cost to the economy of additional public funds: Area ABDE + BCD;• Quantity of additional public funds: Area ABDE - FGCB• Cost per additional dollar ofpublic funds: MC = ABDE ... for the marginal costofpublic funds: MC = 1 + FGCD (ABDE - FGCB)The costof an extra dollar ofpublicfunds is: $1 plus the additional deadweight loss per dollar of extra funds. Why does...
... decisions. 2.1.1 Product costing The objective of determining the costof products is of prime importance in cost accounting. The total product cost and cost per unit of product are important ... parameters, a cost accountant delves into details on material, manufacturing and labor costs. He includes analyses of costs versus profitability in all areas of operation. The finer points of his ... consists of only indirect product costs. Indirect costs cannot be easily traced to specific products; however, they are part of the costof getting a product ready to sell. Since period costs...