ABC Builders is analyzing its project costs using different costing methods:

• Requirements:
  • Calculate the Marginal Cost per additional construction project:
    • Variable Costs: $500,000
    • Fixed Costs: $1,000,000
• Apply Activity-Based Costing to allocate project management and site supervision costs.
• Evaluate the benefits of Marginal Cost Accounting in managing subcontractor expenses.
• Discuss how Standard Cost Accounting could improve cost estimation for construction projects.

Marginal Cost Calculation:

Category	Amount ($)
Variable Costs	$500,000
Fixed Costs	$1,000,000
Total Cost	$1,500,000