Nestl S.A. is analyzing its production costs using different accounting methods: Requirements: Calculate the Marginal Cost of producing additional units of a new beverage: Variable

Nestlé S.A. is analyzing its production costs using different accounting methods:

Requirements:

• Calculate the Marginal Cost of producing additional units of a new beverage:
  • Variable Costs: $2 per unit
  • Fixed Costs: $1,000,000

• Implement Activity-Based Costing to allocate marketing and distribution costs.
• Compare the costs calculated under Marginal Cost Accounting and ABC.
• Discuss how Standard Cost Accounting could enhance cost management in beverage production.

Marginal Cost Calculation:

Category	Amount ($)
Variable Costs	$2
Fixed Costs	$1,000,000
Total Cost	$1,000,002