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".

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


Investment dictionary. . 2012.

Look at other dictionaries:

  • incremental cost — ➔ cost1 * * *    ► See Marginal Cost. * * * incremental cost UK US noun [C or U] ► ACCOUNTING the extra cost of making or dealing with one more unit of something: »The proposed treatment would result in an incremental cost of €3,457 per… …   Financial and business terms

  • incremental cost — papildomos sąnaudos statusas T sritis Gynyba apibrėžtis NATO – sąnaudos, kurios viršija įprastines organizacijos sąnaudas ir gali būti atskirų finansavimo susitarimų objektu. atitikmenys: angl. incremental cost ryšiai: susijęs terminas – ribinės… …   Lithuanian dictionary (lietuvių žodynas)

  • incremental cost — noun the increase or decrease in costs as a result of one more or one less unit of output • Syn: ↑marginal cost, ↑differential cost • Hypernyms: ↑monetary value, ↑price, ↑cost …   Useful english dictionary

  • incremental cost — Additional or increased costs. For example, as applied to cost of gas, includes cost of gas to distributors plus transportation costs and taxes. Fuels Research Council Inc. v. Federal Power Commission, C.A.I11., 374 F.2d 842 …   Black's law dictionary

  • incremental cost — /ˌɪŋkrɪment(ə)l kɒst/ noun the cost of making extra units above the number already planned (this may then include further fixed costs) …   Dictionary of banking and finance

  • incremental cost — Fin see differential cost …   The ultimate business dictionary

  • Incremental Cost Of Capital — A term used in capital budgeting, the incremental cost of capital refers to the average cost a company incurs to issue one additional unit of debt or equity. The incremental cost of capital varies according to how many more or fewer units of debt …   Investment dictionary

  • Incremental cost-effectiveness ratio — The incremental cost effectiveness ratio of an intervention in health care is a term used in cost effectiveness analysis in pharmacoeconomics. It is defined as the ratio of the change in costs of a therapeutic intervention (compared to the… …   Wikipedia

  • incremental cost of capital — The overall cost of raising extra finance. For example, if extra debt is incurred, this increases the risk to equity and debt funders, who will in turn demand a higher rate of return on their investment. The concept is also applied to funding… …   Accounting dictionary

  • incremental cost of capital — The overall cost of raising extra finance. For example, if extra debt is incurred, this increases the risk to equity and debt funders, who will in turn demand a higher rate of return on their investment. The concept is also applied to funding… …   Big dictionary of business and management

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