Describe different method of costing.

Costing methods are essential in power distribution management to determine the cost of electricity generation, transmission, and distribution. Different costing methods help utilities and regulators set tariffs, optimize resources, and ensure financial sustainability. The following are various costing methods used in power distribution management:  

### 1. Marginal Costing  
Marginal costing considers only variable costs while fixed costs are treated as period costs. In power distribution, marginal cost represents the cost incurred in generating and distributing an additional unit of electricity. This method helps in tariff determination, particularly in peak and off-peak load pricing. By using marginal costing, utilities can set differential pricing, encouraging demand-side management and efficient energy use.  

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