Incremental costs

Incremental costs are costs that change with a decision to produce an additional quantity of product. These would include direct costs plus any semifixed costs (such as adding an additional shift) resulting from an increase in quantity produced.

Definitions

According to Product Manager's Handbook by Gorchels (2nd edition),

Incremental costs. Costs that change with a decision to produce an additional quantity of product. These would include direct costs plus any semifixed costs (such as adding an additional shift) resulting from an increase in quantity produced.