cost

(redirected from Private cost)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia, Wikipedia.

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 ?
Second, there is a private cost that an individual employee must bear when blowing the whistle on fraudulent behavior.
Were policies aiming simply to align the private costs of individual consumption choices with their social costs, which include the costs borne by others, public policymakers could close the gap by levying an excise tax equal to the external cost per unit purchased.
Our experiment has two treatments: in the Baseline treatment, the participants do not bear the private cost for littering whereas in the second treatment (which we term as the 'Cost treatment'), each participant bears the private cost for littering.
Where PC refers to the total Private cost of the duration of normal school system (six years) per pupil.
Private costs generally refer to expenditures families and communities incur (such as for tuition, textbooks, uniforms, etc) in private and public schools (Tsang, 1995).
The last two terms on the right-hand side of Equation (3) show explicitly how each additional vehicle imposes external congestion costs on other commuters; these two terms together equal the difference between marginal social and marginal private cost.
In a static theory, government intervention, whether subsidies or other industrial policy, can improve social welfare by setting marginal private cost equal to marginal social cost.
The short-hand description for this [externality problem] is that private costs (or benefits), which do influence a resource owner, are not equivalent to the total of social costs (or benefits) associated with the way an owner uses his resources.
Market failure exists when there is a divergence between social and private costs and benefits of a particular activity.
The discount rate is the private cost of borrowing capital, rather than the interest rate that governments would have to pay on borrowed funds.
Those who have a knowledge the history of the British Police will know that a number of constables and sergeants,full members of the constabulary of that district, were employed at private cost at a number of factory sites up until the late 1960s.
This makes the private cost of affirmative action relatively low for the majority.