Long Run Incremental Cost - LRIC

AAA

DEFINITION of 'Long Run Incremental Cost - LRIC'

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

INVESTOPEDIA EXPLAINS 'Long Run Incremental Cost - LRIC'

These are the changing costs that a company can somewhat foresee. For example, oil price increases, rent increases, and expansion and maintenance costs.

RELATED TERMS
  1. Incremental Cost

    The encompassing change that a company experiences within its ...
  2. Long Run

    A period of time in which all factors of production and costs ...
  3. Long-Run Average Total Cost - LRATC

    A business metric that represents the average cost per unit of ...
  4. Marginal Cost Of Production

    The change in total cost that comes from making or producing ...
  5. Marginal Rate of Technical Substitution

    The rate at which one factor has to be decreased in order to ...
  6. Absolute Advantage

    The ability of a country, individual, company or region to produce ...
Related Articles
  1. Cleaning Up Dirty Surplus Items On The ...
    Markets

    Cleaning Up Dirty Surplus Items On The ...

  2. Economic Moats: A Successful Company's ...
    Active Trading

    Economic Moats: A Successful Company's ...

  3. Business Startup Costs: It's In The ...
    Entrepreneurship

    Business Startup Costs: It's In The ...

  4. Fund Costs and Expenses
    Options & Futures

    Fund Costs and Expenses

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center