Below please find a definition of “Incremental Cost”

Incremental Cost: The additional expenditures that are incurred by a company due to any specific action are termed as incremental costs. For example it was necessary for a company to buy new equipment or hire more people and the expenses towards these actions lead to incremental costs.

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Tags: Incremental cost definition, Incremental cost example, What is incremental cost?, Incremental cost analysis, Incremental cost of capital, Cost

On February 13, 2012 By Richard Wilson

Practice Test

Fixed Cost Definition

Below please find a definition of “Fixed Cost”

Fixed Cost: A cost that is not affected by the variation of a business volume is termed as fixed cost. It is typical for a company to have varying expenditures for items like building lease costs, staff wages etc but a fixed cost always remains the same regardless of the changing production costs.

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Expand Your Financial Vocabulary: Read more finance terms and definitions

Tags: Business fixed cost, Financial fixed cost, Fixed cost definition, Defining fixed cost, Fixed cost, Cost, Fixed, Fixed price, Fixed cost meaning, Fixed cost example

On February 13, 2012 By Richard Wilson

Practice Test

Cost of Sales Definition

Below please find a definition of “Cost of Sales”

Cost of Sales: Cost of Sales is also often termed as Cost of Goods Sold. It refers to the cost of those particular goods that have been sold over a particular period of time. These costs generally are inclusive of all costs of purchase and other related costs that have been incurred for getting the inventory to the current location.

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Expand Your Financial Vocabulary: Read more finance terms and definitions

Tags: What is cost of sales?, Definition of cost of sales, Cost of sales definition, Cost of goods sold, Particular goods, Cost of sales, Sales, Cost, Define cost of sales, Cost of sales example, Cost of sales formula

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Incremental Cost Definition

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