Marginal analysis (incremental or differential) looks only at those costs which differ among the possible choices. Total unit cost includes all costs (fixed and variable), some of which may be irrelevant to the decision process. Sunk costs are irrelevant to the decision process. Total unit cost is dependent on the cost system that was used to generate them. Total unit cost include both fixed and variable cost on a per unit basis. CVP analysis separates out these costs.
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