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incremental cost

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Financial Dictionary

Incremental Cost

The encompassing change that a company experiences within its balance sheet due to one additional unit of production.

Investopedia Commentary

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

Also referred to as marginal cost.

See also: Long Run Incremental Cost - LRIC

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Financial Dictionary

incremental cost

See marginal cost.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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