1 Just let me say that this encounter has been entirely professional and most helpful. 2  I liked that I could ask additional questions and get answered in a very short turn around. 3  Esther Woodstock, NY. 4  Thank you so much for taking your time and knowledge to support my concerns.
A project's initial costs are those that are incurred during the design and construction process. They can include any of the following: 1  Planning, preliminary engineering, and project design. 2  Environmental impact report. 3  Project-related staff training.  Final engineering.
Marginal cost is the additional cost you incur to produce one more unit. In the example, it's what it costs to make one more cake. Typically, marginal costs start out high and decline as you increase production, as overhead gets spread out over more units and you put unused capacity to work at relatively low cost.