Incremental Costing: How to Calculate and Compare the Incremental Costs and Benefits of Different Options
An incremental cost is the difference in total costs as the result of a change in some activity. Always weigh incremental costs against potential benefits and align them with your goals. Remember, incremental cost isn’t just about numbers; it’s about informed choices. Incremental cost includes a cost-to-benefit analysis to guide businesses in smartly choosing battles. …