cost

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Related to costs: fixed costs, Overhead Costs, Legal 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 classic literature ?
In this same year Henry Clay delivered his memorable speech on the Mexican War, at Lexington, Kentucky, and it was telegraphed to The New York Herald at a cost of five hundred dollars, thus breaking all previous records for news-gathering enterprise.
Individual fortunes are usually revealed in France by rentals, by the number of servants, horses, carriages, and luxuries, the costs of which are all to the interest of the public treasury.
When I consider my neighbors, the farmers of Concord, who are at least as well off as the other classes, I find that for the most part they have been toiling twenty, thirty, or forty years, that they may become the real owners of their farms, which commonly they have inherited with encumbrances, or else bought with hired money -- and we may regard one third of that toil as the cost of their houses -- but commonly they have not paid for them yet.
Dodson and Fogg,' replied the man; 'execution on COGNOVIT for costs.
The cost had materially exceeded her expectations, and she could not return home without disposing of some article she had in her reticule, to supply the vacuum left in her purse.
said the sparrow; 'thy cruelty shall cost thee they life yet
I heard one tell the other that not only was the school established for the members of any race, but the opportunities that it provided by which poor but worthy students could work out all or a part of the cost of a board, and at the same time be taught some trade or industry.
The Russian expedition actually cost France less than fifty thousand men; the Russian army in its retreat from Vilna to Moscow lost in the various battles four times more men than the French army; the burning of Moscow cost the lives of a hundred thousand Russians who died of cold and want in the woods; finally, in its march from Moscow to the Oder the Russian army also suffered from the severity of the season; so that by the the time it reached Vilna it numbered only fifty thousand, and at Kalisch less than eighteen thousand.
That piece of paper, as you call it, cost us the hard savings of years, it cost us weeks and months in the bush and amongst the swamps - it cost a man's life, not to mention the niggers we lost.
It then cost French Louis nine hundred to remain in the game, which he contributed after a similar debate.
When the Ass persisted in his effort, the man let him go and said, "Conquer, but conquer to your cost.
Thereupon the Thrifty Person brought an action against the Chief of the Weather Bureau for the cost of the umbrellas.