are the variable costs that are added when booking a new account, or removed when closing an inactive account.
When you put together a pro forma for a marketing campaign, make sure you use incremental costs
instead of fully allocated costs.
Exhibit 3, above, shows the proportionate savings (benefits from participating in the group effort) as the difference between a segment's stand-alone cost and its incremental cost
of joining the group.
Engelhard Corporation (NYSE:EC), one of the largest surface and materials science companies in the world, today announced that its Board of Directors has unanimously approved a recapitalization plan consisting of a self-tender offer for 26 million shares for $45 per share in cash, continued execution of the company's business strategy and incremental cost
savings the company expects will deliver $15 million annually beginning in 2007.
Ugone, an economist based in Dallas, has frequently used large databases and complex computer models to evaluate lost profits and valuation-related issues including lost sales analyses, incremental cost
analyses, assessments of profitability and competitive business environments, claimed lost business value, and claimed reasonable royalties.
The analysis concluded that "the Incremental Cost
Effectiveness Ratio (ICER) comparisons showed that the ThinPrep, conventional Pap smear + HPV and ThinPrep + HPV strategies were dominated by the ThinPrep Imaging System, meaning the Imaging System was both more effective and less costly.
The results of the simulations revealed an Incremental Cost
Effectiveness Ratio (ICER) of $88,700 per Quality Adjusted Life Year (QALY) in the ICDs FOR ALL strategy as compared to the use of MTWA risk stratification.
Unlike other USB mobile phone bridge product recently announced, i-Disk Mobile has no switches or buttons on the flash drive, all data management functions are handled through mobile phone keys/buttons, so the incremental cost
is low compared with alternative solution which requires expensive tooling to add switches or buttons on the flash drive.
Some segments still face significant technology roadblocks and/or the continuing problem of relating the incremental cost
of the new technologies to the value of the derived benefit to the end-user.
Adding telecommunications infrastructure at the same time as other utility projects leverages these construction dollars at a much lower incremental cost
Unlike a TV broadcaster, which can reach any number of consumers in a defined area for a fixed cost, Web publishers are challenged with the fact that each new downloader brings incremental cost
included those associated with overall healthcare, productivity and income losses, and the educational and judicial systems.
Estimates made by The Johnsson Group last summer of incremental costs
associated with the new SEC reporting/disclosure changes ("New Regulations: Planning for the Unplanned Costs," January/February 2003) reflected views at the time and were based on knowledge of the financial reporting function at Fortune 500 companies.
Through informal discussions, they are finding any incremental costs
of utilizing green technology over conventional designs are nominal in more energy efficient buildings.
This includes incremental costs
of acquiring, constructing or installing the assets that are incurred in transactions with independent third parties.