cost

(redirected from Cost estimate)
Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Encyclopedia.

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 estimates, contract costs and cost overruns are strongly related.
Washington State DOT (WSDOT) has created a multifaceted process to improve cost estimates and address risk assessment, called the Cost Estimate Validation Process (CEVP[TM]).
The final task is simply to multiply the unit rates by the quantities to obtain the basic project cost estimate.
In addition, as shown in Table 2, the correlation of the percentage of large project overruns with the percentage of those for which the cost estimate is revised to accompany changes in user requirements was not significant.
A PM has the ultimate responsibility to review and assess the validity of a program office's cost estimate and to present it to superiors in a balanced, responsible way.
Recommendation: To improve DOD's ability to manage and reduce O&S costs of weapon systems over their life cycle, the Secretary of Defense should direct the Under Secretary of Defense for Acquisition, Technology and Logistics and the Director of OSD Cost Assessment and Program Evaluation to require the services to periodically update their life-cycle O&S cost estimates for major weapon systems throughout their life cycle.
com is designed with tools covering four key activities for civil engineers: Creating project cost estimates from scratch or from templates; Sharing cost estimates, templates, and related information with their work groups in a secure location; Finding vendor specification and cost information quickly; and Reporting information to stakeholders and creating custom reports.
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.
Performing the test in a digital date environment will create sufficient rigor in the estimates and will provide the ability to quickly and efficiently develop various scenarios with the data--including system-performance characteristics--resulting in a comprehensive system-level cost estimate.
However, the early cost estimates are raising doubts about the viability of the concept.
The JSF development cost estimate stayed about the same.
It offers transparency into how GAO will conduct an audit of a program's cost estimate, and it offers EVM data and tips on how to develop reliable Estimates at Completion (EACs) using cost estimating techniques.

Full browser ?