marginal revenue

The revenue from the next unit.

Marginal Revenue is the additional revenue generated from selling one more unit; it supports decisions on output levels and pricing, especially when compared with marginal cost to maximize profit.

- Used in product/service costing, budgeting, and variance analysis.
- Used to support pricing decisions and profitability analysis by cost behavior and drivers.

- Example: The costing team uses **marginal revenue** to allocate costs and analyze margins by product line.

- Why it matters: Improves cost accuracy, supports better pricing and budgeting, and strengthens performance measurement.