incremental cost


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Related to incremental cost: Sunk cost

incremental cost

[‚iŋ·krə¦ment·əl ′kȯst]
(industrial engineering)
The difference between the costs and the revenues between two alternative procedures.
The cost of the last unit produced at a given level of production.
References in periodicals archive ?
The difference method determines the incremental cost of a service by subtracting the stand-alone cost of all other services from total cost of all services.
Our five-year incremental cost estimate of $15 700 is consistent with the high end of longitudinal cost estimates in the literature, and very similar to the lifetime estimate reported by Yang et al (13) in their simulation study.
Incremental costs represent the cost of adding the production of one output to an existing vector of outputs.
But from the start there will be incremental savings, not incremental costs.
The average incremental cost per stay does become flat at high volumes, and economies of scale actually occur at very high volumes.
Adding the cost-matching condition requires that no buyer (or set of buyers) faces prices less than incremental costs. That is, each buyer must face a price between stand-alone and incremental cost.
When you put together a pro forma for a marketing campaign, make sure you use incremental costs instead of fully allocated costs.
It is only when the customer actually flies using the ticket acquired with the voucher that the airline incurs the incremental costs. Prior to this time, the only cost incurred by the airlines would be the actual administrative cost of issuing the travel voucher (e.g., paper, ink and ticket agent payroll).
"The incremental cost, as far as our numbers are concerned, would not breach P20 billion.
According to Con-com's presentation during the meeting, the estimated total incremental cost directly attributed to federalism features would only amount to P13.29 billion, way below what was presented by the Neda-estimates as low as P156 billion to as high as P243 billion.
The Milwaukee, Wisconsin-based company said the retaliatory duties would result in an incremental cost of about $2,200 per average motorcycle exported from the United States to the European Union, but did not provide more details on current motorcycle costs.
Abdulaziz al-Ghurair, chair of the UAE Banks Federation, said, 'We have taken benchmark banks to tell us what is the actual cost of deposit and the incremental cost of deposit that will become the interbank rate for the UAE.'
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