Home > Glossary > I > Incremental Cost
Illustration

Incremental Cost

Incremental cost refers to the additional expense incurred when producing one extra unit of output or undertaking a specific decision. It helps management evaluate the profitability of new projects, product lines, or process changes by comparing extra costs against potential additional revenue.

More Items

Investment Portfolio

An investment portfolio is a collection of financial assets such as stocks, bonds, and other securities held by a business…

Interest Accrual

Interest accrual refers to the recognition of interest expense or income over time, even if it has not yet been…

Income Distribution

Income distribution refers to how profits are allocated among stakeholders, such as shareholders, employees, or reinvestment in the business. It includes dividends,…