spot_img

JAIIB | AFM | MARGINAL COST – CASE STUDY

Join us at Learning Sessions to unlock the power of strategic decision-making in banking with our JAIIB courses. Marginal cost is a major financial decision-making tool that evaluates the additional costs and benefits of producing one more unit of a good or service. It is an important concept for banking professionals, especially those preparing for the Junior Associate of Indian Institute of Bankers (JAIIB) exam under the Accounting and Financial Management (AFM) module. This article examines the foundational principles of marginal analysis, its relevance to the banking sector, and includes a case study to demonstrate its application in financial decision-making.

Full Course Videos in Hindi English
Check Here
————————————————————-
jaiib ppb short notes part 1
Check Here
————————————————————-
jaiib exam free study material
Check here
————————————————————-
jaiib study material pdf notes 2023
Get Tests Here
————————————————————-
how to prepare for ppb
Check Here

DOWNLOAD PDF MARGINAL COST -CASE STUDY

Marginal analysis is the process of evaluating the impact of small changes in business operations. It helps in comparing the additional (marginal) benefits of an activity to its additional costs. Businesses use marginal analysis to make decisions regarding resource allocation, pricing, production, and cost control.

For the extensive preparation of candidates, get details through our YouTube videos for JAIIB AFM Module wise Syllabus with explanations and tips to help candidates in their preparation journey.

You may also like these JAIIB case studies:

JAIIB | AFM | HOLDING ORMS BASED METHOD

JAIIB | AFM | WORKING CAPITAL

The basic formula is:

Marginal Benefit=Change in Total Benefit/Change in Quantity

 Marginal Cost=Change in Total Cost/Change in Quantity

In financial contexts, marginal analysis focuses on understanding how the incremental costs and revenues affect overall profitability and helps in determining the point at which producing one additional unit results in diminishing returns.

Types of Marginal Analysis:

  • Marginal Revenue Analysis
  • Marginal Cost Analysis
  • Marginal Profit Analysis

In general, it can be said that Marginal analysis is a dominant tool that helps banks and financial institutions make informed decisions by evaluating the additional costs and benefits of their actions. For JAIIB aspirants, considering marginal analysis is crucial in developing the skills needed to assess financial decisions, optimize cost structures, and improve overall profitability. By mastering this topic, students not only prepare themselves for the AFM module of the JAIIB exam but also gain a valuable skill set that will serve them throughout their careers in banking and finance. Learning Sessions provides additional information about JAIIB AFM ACCOUNTING OF LEASE by giving examples of real life scenarios.

Learn more about this case study through our YouTube channel and PDF.

Get access to our Telegram Channel for free Pdfs of JAIIB.

You May also Find these JAIIB Posts Useful

VARIANCE ANALYSIS

CALCULATION OF NET PROFIT OR LOSS

GROSS PROFIT CALCULATION

TYPES OF STANDARDS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

🤩 🥳 JAIIB NEW BATCH START 🥳 🤩spot_img
🤩 🥳 JAIIB CAIIB CLASSES 🥳 🤩spot_img

POPULAR POSTS

RELATED ARTICLES

Continue to the category

JAIIB | ACCOUNTING AND FINANCIAL MANAGEMENT (AFM) | CASE STUDY ON TYPES OF VOUCHERS

The Junior Associate of Indian Institute of Bankers (JAIIB) examination is a principal credential for banking professionals aiming to enhance their knowledge of banking...

JAIIB | ACCOUNTING AND FINANCIAL MANAGEMENT (AFM) | TYPES OF RECEIPTS – CASE STUDY

The Junior Associate of Indian Institute of Bankers (JAIIB) certification equips bankers to understand and apply core banking concepts. The Accounting and Financial Management...

JAIIB | ACCOUNTING AND FINANCIAL MANAGEMENT (AFM) | CASE STUDY ON TYPES OF EXPENDITURE

The Junior Associate of Indian Institute of Bankers (JAIIB) examination prepares banking professionals with in-depth knowledge of banking operations, accounting principles, and financial management....

JAIIB | ACCOUNTING AND FINANCIAL MANAGEMENT (AFM) | STATUTORY AUDIT – CASE STUDY

The Junior Associate of Indian Institute of Bankers (JAIIB) is a prominent examination that equips banking professionals with important knowledge of banking practices and...