incremental cost

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Related to incremental cost: Sunk cost

Marginal Cost

The total cost to a company to produce one more unit of a product. The marginal cost varies according to how many more or fewer units a company wishes to produce. Increasing production may increase or decrease the marginal cost, because the marginal cost includes all costs such as labor, materials, and the cost of infrastructure. For example, if a widget manufacturer increases the number of widgets it produces, it may need to buy more material, but the costs of labor and factory maintenance remain the same, and are spread out over a greater number of widgets. This may reduce the marginal cost. On the other hand, if the manufacturer hires more workers and builds another factory, it will likely increase the marginal cost. It is also known as the incremental cost.

incremental cost

References in periodicals archive ?
Several major variables are considered when determining the amount of the incremental cost to be allocated to the free travel awards.
Each segment's allocation of benefits plus its incremental cost is the share of the joint cost assigned to it.
That is why I'm focusing on incremental costs, not total costs.
Estimates made by The Johnsson Group last summer of incremental costs associated with the new SEC reporting/disclosure changes ("New Regulations: Planning for the Unplanned Costs," January/February 2003) reflected views at the time and were based on knowledge of the financial reporting function at Fortune 500 companies.
Through informal discussions, they are finding any incremental costs of utilizing green technology over conventional designs are nominal in more energy efficient buildings.
This includes incremental costs of acquiring, constructing or installing the assets that are incurred in transactions with independent third parties.
In addition, the GEF was designated to "cover the agreed incremental costs of relevant activities under Agenda 21, in particular for developing countries.
Business owners and managers and their advisors need information on incremental costs, those costs that will be increased, decreased, or eliminated by contemplated changes.
100 to provide the framework necessary to set regulatory priorities in an efficient and cost-effective manner, and to enable agencies to address the greatest risks and ensure that the incremental costs of regulatory options are reasonably related to the incremental benefits.
Tenders are invited for Construction cost model of bottom-up calculations used for long-term incremental costs take into account the overhead common costs (LRIC +) wholesale access to the network infrastructure of copper and NGA: wholesale access to copper and fiber loop, wholesale access to the copper sub-loop, wholesale broadband access

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