The incremental concept focuses on the impact on decisions made concerning cost and revenue as a result of variation in prices, products, procedures, and investments. It focuses on increasing revenue more than the rising cost of products. The incremental concept is applied in organizations that may have low profits or in organizations that a small scale and new in the markets. By using the incremental concept, they increase the number of customers and the price of their products so that they can be able to increase their profits as well as increase revenue. The incremental concept may be practical mostly in new products because there is a chance of ensuring an increase in profits from the start of the business as long as it focuses on increasing revenue rather than cost.

For example, the Bic company, which is a firm that deals in general supplies of office pens and other office products and services, has struggled a lot to increase its profits. The firm was only producing the Bic non-sharp pointed pens, but it discovered that it was not making enough profits and had a low generation of revenue. It then started producing other products like sharp-pointed Bic pens, quick-dry gel pens e.t.c. As a result, they have been able to increase their profits and have generated sufficient revenue in the economy.