The incremental cost of borrowing may also be referred to as the marginal cost of borrowing.

Question

Quizplus · Accepted Answer

The terms "incremental cost" and "marginal cost" are often used interchangeably in finance and economics and refer to the additional cost associated with producing one additional unit or undertaking one additional action. Therefore, the incremental cost of borrowing and the marginal cost of borrowing are the same thing.

The Incremental Cost of Borrowing May Also Be Referred to as the Marginal