incremental cost

USAGE SUMMARY

The phrase "incremental cost" is correct and usable in written English.
It is typically used in financial and economic contexts to refer to the additional cost incurred when producing one more unit of a good or service. Example: "When evaluating the new project, we need to consider the incremental cost of producing additional units."

✓ Grammatically correct

Science

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

29 human-written examples

How do I calculate incremental cost effectiveness?

Cornell University

The relevant concept here is future short-run incremental cost.

Harvard Business Review

Incremental cost reductions are never sufficient justification for borrowing.

Harvard Business Review

But the incremental cost approaches zero.

Forbes

Good Customer service doesn't have an additional incremental cost.

Huffington Post

Remember, we do all this at an incremental cost.

Los Angeles Times

Human-verified similar examples from authoritative sources

Similar Expressions

31 human-written examples

Incremental cost-effectiveness ratio.

The Journal of Headache and Pain

Incremental cost-effectiveness ratio(s).

Health Economics Review

The main outcome measure was incremental cost-effectiveness ratio.

Duke University

An incremental cost-effectiveness analysis will also be undertaken.

Duke University

Incremental cost-effectiveness ratios (ICERs) assessed incremental cost/hospitalization avoided.

ClinicoEconomics and Outcomes Research

Expert writing Tips

Best practice

When analyzing cost-effectiveness, clearly define the baseline against which the "incremental cost" is being measured. This ensures accurate comparisons and informed decision-making.

Common error

Avoid using "incremental cost" interchangeably with average cost. "Incremental cost" refers to the additional cost of producing one more unit or taking one more action, while average cost is the total cost divided by the number of units.

Linguistic Context

The phrase "incremental cost" functions primarily as a noun phrase, where the adjective "incremental" modifies the noun "cost". According to Ludwig, it's used to describe an additional expense incurred when making a change in production or activity. This is shown in the examples provided, highlighting its role in financial and economic discussions.

Expression frequency: Uncommon

Frequent in

Science

67%

News & Media

17%

Formal & Business

16%

Less common in

Academia

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

In summary, the phrase "incremental cost" is a grammatically correct and usable term, primarily functioning as a noun phrase to denote the additional expense associated with a change in activity or production. According to Ludwig, while it is most commonly found in scientific contexts, it also appears in news media and formal business settings. Related terms include "marginal cost" and "additional cost". When using "incremental cost", be sure to clearly define the baseline for accurate comparisons and avoid confusing it with average cost. Considering that Ludwig AI states the phrase is correct and very usable in written English, this makes the term a handy and useful instrument for economical and financial evaluations.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

marginal cost

Focuses on the cost of producing one additional unit, similar to "incremental cost" but often used in economic contexts.

additional cost

A more general term that refers to any extra cost incurred, not necessarily tied to a single unit or action.

added expense

Highlights the financial burden of the additional cost.

extra expenditure

Emphasizes the spending aspect of the additional cost.

marginal expenditure

Highlights the financial burden of the marginal cost.

supplemental charge

Suggests an additional fee or charge.

increased outlay

Focuses on the higher amount of money spent.

cost increment

Reverses the word order while retaining the core meaning.

variable cost

Points out to a cost that changes with the quantity of the good or service produced.

attributable cost

Refers to the cost that can be directly linked to a specific activity or product.

FAQs

How is "incremental cost" used in cost-effectiveness analysis?

In cost-effectiveness analysis, "incremental cost" is used to calculate the "incremental cost-effectiveness ratio" (ICER), which helps determine the additional cost per unit of health outcome gained when comparing two interventions.

What's the difference between "incremental cost" and marginal cost?

While often used interchangeably, "incremental cost" can refer to the cost of any change in production or activity, whereas marginal cost specifically refers to the cost of producing one additional unit. In many contexts, however, they are considered synonymous.

How do I calculate "incremental cost" effectiveness?

Calculate "incremental cost" effectiveness by dividing the change in costs between two options by the change in their effects (e.g., health outcomes). This ratio indicates the cost per additional unit of effect gained.

What are some examples of "incremental cost" in business?

Examples of "incremental cost" in business include the additional cost of producing one more product unit, expanding services to a new customer, or implementing a new feature in a software application. These costs are crucial for pricing and profitability decisions.