UK Accounting Glossary
Marginal Value is the incremental value that is achieved through additional output. It occurs through a product modification that results in an increase in price or unit production.
Marginal value is calculated by subtracting additional input costs from the unit price of the additional output.
The company were able to increase their marginal value by introducing initiatives that we responsible for enhancing worker’s productivity; in this way, they were able to generate additional units of their products while minimising additional labour costs.
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This glossary post was last updated: 27th August 2019.