Incremental costs

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