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Incremental Cost

What Does Incremental Cost Mean?
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 Terms

Balance Sheet
Efficiency Principle
Long Run Incremental Cost - LRIC
Unit Cost
More Related Terms

Related Links

Reading The Balance Sheet - Learn about the components of the statement of financial position and how they relate to each other.
Introduction To Fundamental Analysis - Learn this easy-to-understand technique of analyzing a company's financial statements and reports.

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