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 ?
Cost: $2,250 with two credits, $895 noncredit, with housing; $1,890 with two credits, $535 noncredit, w/out housing.
Reduce the demand for services and cost of claims by promoting wellness, disease management and large case management.
"Making heavy bales reduces the cost per ton for wire usage," agrees Harris.
Keppel walks the reader through the actual execution of a cost segregation study and report, illustrating it as a multi-step process as well as a multi-party process involving a tax practitioner, engineering, architectural, and other experts.
Estimated annual total treatment cost is $125,000 per patient.
67(a) in Scott, 328 F3d 132 (2003).The court noted, however, that "[o]ther costs ordinarily incurred by masts, such as fees paid to trustees, expenses associated with judicial accountings, and the costs of preparing and filing fiduciary income tax returns, are not ordinarily incurred by individual taxpayers, and they would be fully deductible under the exception created by [section] 67(e)" Id.
On this page are links to FEI Compliance Costs surveys conducted in January 2004, July 2004, March 2005 and, most recently, March 2006.
In recent years, the strict emphasis on cost, combined with strict end-strength limitations, has led to a reduction of in-house technical expertise and, some believe, if maintained over the longer term, will lead to the possible elimination of NWCF entities.
Motivated by dissatisfaction with the official poverty measure, which many scholars and practitioners share, we propose the use of sequential costs of poverty to enrich the poverty measure so that it might capture more closely the life-experiences of low-income families.
Propylene, an oil-based derivative, is a key building block for these polymers and a good benchmark for price indexing." Philippe also suggested that a fixed cost treatment program (figured, for instance, on the cost per unit of treated process effluent) is another novel strategy to consider.