cost

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Related to costly: primarily, occasional, perpetually

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 ?
It is actually an attempt to roll back unconstitutional state and local regulatory policies that persist largely because they are too costly and difficult for property owners to successfully challenge.
not medically necessary) or where there exists a reasonably feasible and medically appropriate alternative pattern of care which is less costly for the equipment or alternative treatment which meets the patients medical needs.
Every three years, Beverly would perform a costly major software update throughout the organization, simultaneously upgrading hardware, operating systems, and security updates.
In December the state water board's executive director, Walt Petit, issued a letter to local regulators and the agency's nine regional offices urging them to back off from costly soil and ground water cleanups at ``low-risk'' sites.
0 sets a new benchmark for real-time prediction, diagnosis, and resolution of equipment and process problems that can lead to unplanned downtime, broken schedules, safety hazards, inefficient operation, poor quality, and other costly operational problems.
The continued use of pencil-and-paper methods instead of switching fully to the new computer system has fragmented administrative tasks, resulting in costly slowdowns, duplication of effort and a higher risk of errors, the study found.
Within the data integration space, the data mapping process - understanding where key relationships exist between data sources - has traditionally been laborious, costly and error-prone," said Steve Adams, chief architect for Sypherlink.
Yet rather than take part in such costly and risky actions, many large shareholders -- who increasingly are institutional investors such as pension funds and mutual funds -- prefer to employ what is known as the "Wall Street Walk," and sell their shares outright when they are unhappy with management rather than become active and attempt to impact decisions from within the firm.
By automating the production process and using single-use, closed-system disposable cartridges, AutovaxID minimizes costly and error-prone manual monitoring and adjustments and reduces the need for large production facilities containing costly isolation suites and clean rooms.
Written for executives, CPA's, attorneys, venture investors and other industry professionals, Venture Debt Alternatives and Evaluation Guidelines offers a profile of the marketplace along with a systematic framework for approaching the debt capital markets, increasing transaction transparency and avoiding common, costly mistakes.
PEAK Devices has the right combination of LDMOS technology, manufacturing capability and technical expertise to provide former Cree Microwave(R) customers with a viable alternative to costly redesign by developing drop-in replacement LDMOS transistors," commented CEO William McCalpin
In its "Competitive Alternatives" study, KPMG said competitive labor costs along with favorable state-tax incentives contributed to Atlanta ranking as the least costly place to do business among 23 U.