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Marginal Cost Of Industrial Production

Author

Listed:
  • Mariana Man

    () (Universitatea din Petrosani)

  • Vladimir Modrak

    (Technical University in Kosice)

  • Janusz Grabara

    (Czestochowa University of Technology)

Abstract

One of the important issues of production management is the most efficient possible use of the production capacity as the global level of the production fixed expenses depends on the unit’s production capacity and their level per product unit diminishes as the degree of employment of such a capacity tends to be optimum. Accordingly, to a certain volume of achieved production one may add or subtract, under certain circumstances, a certain volume (lot, stratum, and margin) of products; at the same time, the increase or the decrease of production volume determines the change of the total production costs of the unit. As the level of the total costs corresponding to the production that is going to be achieved until the adoption of the decision of increasing or decreasing production level already exists, and the sum total production costs are modified with is determined by the added or subtracted production volume (stratum, lot, and margin).

Suggested Citation

  • Mariana Man & Vladimir Modrak & Janusz Grabara, 2011. "Marginal Cost Of Industrial Production," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 3(1), pages 62-69, May.
  • Handle: RePEc:pcz:journl:v:3:y:2011:i:1:p:62-69
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    Citations

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    Cited by:

    1. Michal Soltes & Lukas Pinka, 2015. "Innovation In Alternative Forms Of Investments," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 11(1), pages 168-178, June.
    2. Helena Koœcielniak, 2014. "An Improvement Of Information Processes In Enterprises – The Analysis Of Sales Profitability In The Manufacturing Company Using Erp Systems," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 10(2), pages 65-72, December.
    3. Vincent Soltes & Beata Gavurova, 2015. "Modification Of Performance Measurement System In The Intentions Of Globalization Trends," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 11(2), pages 160-170, June.
    4. repec:cbu:jrnlec:y:2017:v:1special:p:87-95 is not listed on IDEAS
    5. repec:ovi:oviste:v:xvii:y:2017:i:2:p:243-248 is not listed on IDEAS
    6. repec:aio:aucsse:v:1:y:2017:i:45:p:25-38 is not listed on IDEAS

    More about this item

    Keywords

    Marginal cost; production; product volume;

    JEL classification:

    • C00 - Mathematical and Quantitative Methods - - General - - - General
    • L00 - Industrial Organization - - General - - - General

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