Skip to main content

Business Finance EBK HEALTHCARE FINANCE: AN INTRODUCTION

The meaning of marginal analysis. Introduction: Cost refers to the amount which is given up or paid for getting something in return. Cost in business is regarded as monetary valuation of risk incurred, time and utilities consumed, resources, material, effort and opportunity forgone for delivery of goods or services and in production. All expenses are regarded as a cost whereas all costs are not considered as expenses. The marginal analysis is all about addition of value over the top of base. For instance, extra revenue, extra cost and extra visits. Marginal analysis involves evaluation of the extra benefits ascertained out of an activity in comparison to extra cost being incurred for the same activity. Marginal here means an emphasis on the benefit or cost associated with next individual or unit. For instance profit earned by addition of extra worker or cost of production if one more widget is produced. It is also regarded as a cost benefit study that reveals whether extra benefits ascertained out of a particular action is worth the expenditure incurred on the same.

The meaning of marginal analysis. Introduction: Cost refers to the amount which is given up or paid for getting something in return. Cost in business is regarded as monetary valuation of risk incurred, time and utilities consumed, resources, material, effort and opportunity forgone for delivery of goods or services and in production. All expenses are regarded as a cost whereas all costs are not considered as expenses. The marginal analysis is all about addition of value over the top of base. For instance, extra revenue, extra cost and extra visits. Marginal analysis involves evaluation of the extra benefits ascertained out of an activity in comparison to extra cost being incurred for the same activity. Marginal here means an emphasis on the benefit or cost associated with next individual or unit. For instance profit earned by addition of extra worker or cost of production if one more widget is produced. It is also regarded as a cost benefit study that reveals whether extra benefits ascertained out of a particular action is worth the expenditure incurred on the same.

Solution Summary: The author explains the meaning of marginal analysis, which is based on the evaluation of the extra benefits ascertained out of an activity in comparison to extra cost being incurred for the same activity.

EBK HEALTHCARE FINANCE: AN INTRODUCTION

EBK HEALTHCARE FINANCE: AN INTRODUCTION

6th Edition

ISBN: 9781567937428

Author: Gapenski

Publisher: YUZU

See similar textbooks

Videos

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

Blurred answer

Chapter 5, Problem 6.1STQ

Chapter 5, Problem 6.3STQ

Students have asked these similar questions

What is the difference between positive and negative predictive value?

What is indifference curve?

what is Political cost hypothesis ?

Chapter 5 Solutions

EBK HEALTHCARE FINANCE: AN INTRODUCTION

Ch. 5.1 - Prob. 1.1STQ Ch. 5.1 - Prob. 1.2STQ Ch. 5.1 - Prob. 1.3STQ Ch. 5.1 - Prob. 2.1STQ Ch. 5.1 - Prob. 2.2STQ Ch. 5.1 - Prob. 2.3STQ Ch. 5.1 - Prob. 2.4STQ Ch. 5 - Prob. 1.1STQ Ch. 5 - Prob. 1.2STQ Ch. 5 - Prob. 2.1STQ

Knowledge Booster

Background pattern image

Finance

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Recommended textbooks for you

CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:9780357110362
Author:Murphy
Publisher:CENGAGE L
Business Its Legal Ethical & Global Environment
Accounting
ISBN:9781305224414
Author:JENNINGS
Publisher:Cengage

Text book image

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:9780357110362

Author:Murphy

Publisher:CENGAGE L

Text book image

Business Its Legal Ethical & Global Environment

Accounting

ISBN:9781305224414

Author:JENNINGS

Publisher:Cengage

SEE MORE TEXTBOOKS

Topic 6 - Financial statement analysis; Author: drdavebond;https://www.youtube.com/watch?v=uUnP5qkbQ20;License: Standard Youtube License