cost

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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 ?
The further along a project is, the more detailed and accurate a cost estimate will be.
For individuals who lack a background in the construction industry, this is probably the most difficult aspect of the project cost estimate.
The 2012 feasibility study had a cost estimate of $79 million and unallocated costs of $12 million for a total of $91 million.
To the extent possible, data collected on actual O&S costs should be comparable to data presented in life-cycle cost estimates.
An effective BFM focuses on three strategic enablers for program success: a realistic cost estimate, appropriated funds to support contracts, and the timely and proper obligation and expenditure of those funds.
The result is a detailed, Composite cost estimate based on all available data at the time of the estimate.
com provides individuals who assemble cost estimates associated with heavy civil construction projects with a comprehensive toolbox.
However, the early cost estimates are raising doubts about the viability of the concept.
Strong Negotiating from Part D Plans a Key Driver in 41% Drop from Initial Cost Estimate
The JSF development cost estimate stayed about the same.
In addition to other information, the SAR provides the program's original or current cost estimate baseline and cost growth from that baseline.
Under a contract not to exceed $25,000, O'Connor and Associates will oversee engineering and cost estimate work being done on the proposed College Park project.

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