cost

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Related to Associated cost: Outlay Costs

Cost

The opposite of revenue. An expense that reflects the price of purchasing goods, services and financial instruments. A cash cost means that cash is given up today to the purchase. Also, the purchase price of an investment, which is compared to the sale proceeds to determine capital gain or loss.

Cost

The amount of money or property paid for a good or service. Cost is an expense for both personal and business assets. If a cost is for a business expense, it may be tax deductible. A cost may be paid immediately in the form of cash or over time in a credit sale or similar transaction. Cost is the opposite of revenue: It may be thought of as money spent instead of made.

cost

The expenditure of funds or use of property to acquire or produce a product or service. See also average cost, fixed cost, historical cost, marginal cost, replacement cost, variable cost.

cost

the expenditure upon resources incurred by a firm in producing and selling its output. Each cost is a charge against revenues and profits for the use or consumption of resources during a trading period. (see PROFIT AND LOSS ACCOUNT). Costs can be classified along functional lines, distinguishing between production, selling, distribution, administration and financing costs. Alternatively costs can be classified as either direct costs (usually raw materials and direct labour) or indirect costs (overheads) (see PROFIT AND LOSS ACCOUNT). Costs may also be classified as variable costs and fixed costs, depending on whether they vary with the level of output or activity. In addition, costs may be analysed by product. Finally costs may be classified by location (division, subsidiary, company, department, etc.).

Classification and analysis of costs is necessary for three main business purposes:

  1. for product costing;
  2. for management control;
  3. for decision-making.

Identification and classification of these costs is the core of MANAGEMENT ACCOUNTING. Fig. 28 shows the build up of major cost elements. See PRODUCTION COST, SELLING COST.

cost

the payments (both EXPLICIT COSTS and IMPLICIT COSTS) incurred by a firm in producing its output. See TOTAL COST, AVERAGE COST, MARGINAL COST, PRODUCTION COST, SELLING COST.

Cost

Cash and/or the value of property given to acquire the property received.
References in periodicals archive ?
As far as the associated costs of truck driver registration/security checks, he reiterates that while he does not question the rationale behind voluntary driver background checks for those waiting to obtain expedited clearance at the border, he does notice a huge distinction between the Commercial Driver Registration Program (CDRP) and the proposed bilateral FAST card.
These professionals realize that older "legacy systems," which involve downloading software onto onsite computers, and all the associated costs of update fees, back-ups, equipment obsolescence and regular IT personnel visits are not ideal solutions for managed properties.
The industry argued that deferral of fees without deferral of the associated costs would distort the picture.
Charles Calderon, who was looking for possible cleanup remedies and associated costs, said he was surprised and disappointed by the testimony of state toxics officials.
Instead of purchasing in anticipation of demand - the traditional collection development goal - they now look at just-in-time purchasing and sometimes at not purchasing at all in the traditional sense but, rather, purchasing the desired item from a document delivery service and handing it on to the user, who may or may not be required to pay the associated costs.

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