Where will you apply marginal costing?

Marginal costing is the ascertainment of cost of one extra unit to be prepared or manufactured. Basically thee formula is-

(Marginal Cost)n = (Total Cost)n - (Total Cost)n-1 for nth item .

Through marginal costing we can ascertain whether our cost of production is rising, falling or constant and thus it helps in formation of a strategic plan for the enterprise.