Incremental Cost


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".


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BREAKING DOWN 'Incremental Cost'

Incremental cost is the overall change that a company experiences by producing one additional unit of good.

  1. Balance Sheet

    A financial statement that summarizes a company's assets, liabilities ...
  2. Long Run Incremental Cost - LRIC

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  3. Efficiency Principle

    An economic theory that states that the greatest benefit to society ...
  4. Unit Cost

    The cost incurred by a company to produce, store and sell one ...
  5. Adjusted Gross Income - AGI

    A measure of income calculated from your gross income and used ...
  6. Audit

    An unbiased examination and evaluation of the financial statements ...
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  4. What are working capital costs?

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