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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

Cost

Cash and/or the value of property given to acquire the property received.
Copyright © 2008 H&R Block. All Rights Reserved. Reproduced with permission from H&R Block Glossary
References in periodicals archive ?
Based on current sales volume and cost estimates, and assuming average prices of $2.75 per pound of copper, $1,400 per ounce of gold and $12.00 per pound of molybdenum for the second half of 2019, FCX's consolidated operating cash flows are estimated to approximate $1.9 billion (including $0.3 billion of working capital sources and changes in timing of other tax payments) for the year 2019.
Many agencies such as the Veterans Administration (VA) have struggled with capricious cost estimates. For example, the VA cost estimating methods are proven inaccurate to the tune of $2.5 billion.
Inaccurate cost estimates have long plagued Department of Defense (DoD) acquisition efforts.
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. Fortunately, the tedium of this part of cost estimating has been relieved by PCs and spreadsheets.
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.
By mapping probabilistic cost estimates to profit distributions, risk-driven contracts offer a structured method to expose contractors to more cost risk during EMD.
A sound cost estimate is a necessary, but not sufficient condition in the process of providing a program with the resources necessary for it to be executed successfully.
Establishing a standard WBS will lead to more effective reconciliation of different cost estimates, more reliable baselines, better source selections, and better decision support.
The BFM works in conjunction with the PM and the program's key stakeholders to develop a realistic program office cost estimate that can withstand the cost, schedule, and performance risks realized during development of the system.
If requirements are the backbone of a sound cost estimate, then cost data are the lifeblood.
The project engineer walks away thinking, "How am I going to develop a sound, engineering-based cost estimate in two weeks?" Of course, the project engineer is correct.

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