incremental cost

Definition

The cost associated with one additional unit of production. also called marginal cost.

Use incremental cost in a sentence

You need to make sure that you know what any incremental cost will be so that you can keep up with things.

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The incremental cost was decreasing as we were beginning to finally recognize the economy of scale we had been looking forward to.

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Companies will continue to produce more output until their marginal revenue is equal to their incremental cost, also known as marginal cost.

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incremental capital output ratio (ICOR) cost per gross addition (CPGA)