differential cost (Meaning)

Wordnet

differential cost (n)

the increase or decrease in costs as a result of one more or one less unit of output

No Synonyms and anytonyms found

Differential cost, also known as incremental cost, represents the change in total cost resulting from a specific decision or action.
Managers analyze differential costs to make informed decisions about product pricing and production levels.
When considering whether to accept a special order, businesses evaluate the differential cost of producing additional units.
The decision to make or buy components involves comparing the differential cost of in-house production versus outsourcing.
In cost accounting, differential costs play a crucial role in determining the economic feasibility of various alternatives.
Differential cost analysis helps companies assess the impact of different production methods on their overall cost structure.
When evaluating equipment replacement, businesses consider the differential cost between maintaining the old equipment and investing in new machinery.
The concept of differential cost is instrumental in budgeting and forecasting future financial outcomes.
Businesses often weigh the differential costs of different marketing strategies to optimize their return on investment.
Understanding differential costs allows management to identify cost-effective measures for improving operational efficiency.

the increase or decrease in costs as a result of one more or one less unit of output

No synonyms found.

No antonyms found.

Differential cost, also known as incremental cost, represents the change in total cost resulting from a specific decision or action.

Managers analyze differential costs to make informed decisions about product pricing and production levels.

When considering whether to accept a special order, businesses evaluate the differential cost of producing additional units.

The decision to make or buy components involves comparing the differential cost of in-house production versus outsourcing.