Define marginal cost and marginal costing. How variable costs and fixed costs are treated in marginal costing?
a) Marginal cost is the cost of producing one additional unit; Marginal costing considers only variable costs
b) Marginal cost is the total cost of production; Marginal costing treats fixed costs as variable
c) Marginal cost is the cost of the last unit produced; Marginal costing ignores fixed costs
d) Marginal cost is the additional revenue from producing one more unit; Marginal costing treats fixed costs separately