Incremental Cost

Filed Under » Economics

	Definition of 'Incremental Cost' The encompassing change that a company experiences within its balance sheet due to one additional unit of production. Also referred to as "marginal cost".
	Investopedia explains 'Incremental Cost' Incremental cost is the overall change that a company experiences by producing one additional unit of good.

Related Definitions

Long Run Incremental Cost - LRIC

Forward-looking incremental costs that can be accounted for by a company.
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Balance Sheet

A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time. These three balance sheet segments give investors an idea as ...
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Efficiency Principle

An economic theory that states that the greatest benefit to society of any action is achieved when the marginal benefits from the allocation of resources are equivalent to the marginal ...
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- Unit Cost
  
  The cost incurred by a company to produce, store and sell one unit of a particular product. Unit costs include all fixed costs (i.e. plant and equipment) and all variable costs (labor, ...
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Reading The Balance Sheet

Learn about the components of the statement of financial position and how they relate to each other.
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Introduction To Fundamental Analysis

Learn this easy-to-understand technique of analyzing a company's financial statements and reports.
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