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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 ?
Sandra Mewies Labour Delyn Travel costs: pounds 6,340.55 Office costs: pounds 9,450.60 Additional costs: 12,996.35 Staff salaries: pounds 51,574 Most notable claim: Spent pounds 1,598.89 on a top-of-the-range TV and DVD player.
Dada: As the CFO of the district, I made sure I understood from start to finish what needs to happen to control health care costs. Once I educated myself, I wanted to find out, how do I reduce health care costs and whom do I use?
"Wire, like equipment costs, energy cost, labor cost is a part of the cost of baling.
Controlling the channel of distribution: Plan sponsors have found that limiting the size of pharmacy networks used to dispense specialty drugs can significantly reduce costs. According to the Drug Trend Report, plans that implement an exclusive pharmacy network save on average 10% more than those that do not.
67(a) and not to limit the deductibility of any other trust administrative costs. Because the statute's text is "clear and unambiguous" we need not address the legislative history arguments; see Scott, 328 F3d at 139.
The Act also articulates requirements for energy cost reductions for certain projects.
FEI staff questioned whether these consecutive estimates of average total costs were comparable, because the same FEI members did not necessarily respond to each previous consecutive survey.
One solution might be for NWCF entities to look at alternative, noncompetitive revenue streams with the intention of reducing operating costs, enhancing commercialization of dual-use technologies, and increasing private-sector access to defense-unique capabilities.
Recent work of ours has argued that, even more so than work expenses or payroll taxes, there are other, yet unmeasured costs associated with being low-income (Peck and Segal, 2006).
George Totura, program manager, water management for Naperville, Illinois, USA-based Nalco, noted that many other cost increases, such as energy costs, have a much bigger impact in the mill.