ISDA Master Agreement and Incremental costs: Difference between pages

Revision as of 14:26, 21 December 2020

In financial decision making, incremental costs are ones which will be different, depending on whether or not the decision is implemented.

It is only the incremental costs - together with any incremental revenues - which are relevant in making the related financial decision.

For example, 'Sunk costs don't count'.

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-A commonly used standardised contract between counterparties trading OTC derivatives.
+In financial decision making, incremental costs are ones which will be different, depending on whether or not the decision is implemented.
+It is only the incremental costs - together with any incremental revenues - which are relevant in making the related financial decision.
+For example, 'Sunk costs don't count'.
 == See also ==
+* [[Cashflow]]
+* [[Discounted cash flow]]
+* [[Incremental cash flows]]
+* [[Incremental revenue]]
+* [[Sunk costs]]
-* [[ISDA]]
+[[Category:Accounting,_tax_and_regulation]]
-* [[OTC]]
+[[Category:The_business_context]]
-* [[Derivative]]
+[[Category:Corporate_finance]]
-* [[MNA]]