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 ?
Policies that subsidize these substitutes result in remarkable reductions in private costs [ILLUSTRATION FOR FIGURES 4 AND 5 OMITTED] over time.
Proposition 4 Part (1) means that the suppliers will gain more ex ante payoffs from more manufacturers disclosing their private cost information.
First, in referring to costs and benefits, I mean the private costs and benefits to the participants in the information flow, not the social costs and benefits of protecting privacy or privacy generally.
Parameter Value Private Cost Ratio (PCR) 0.59 Domestic Resources Cost Ratio (DRCR) 0.12 Table 4: Parameter Value of the Output Policy Impact on the Aren Sugar Processing Business in the Kolaka District, 2014.
Individuals seeking to blow the whistle on fraudulent behavior may bear a high private cost of blowing the whistle.
The hypothesis of the study is thus: littering is likely to be lower if the private cost of its production is high.
Those concepts are social costs versus private costs, total costs versus variable social costs, costs per transaction versus costs per unit of payment value, and constant versus increasing returns to scale.
The amount of the congestion cost represents the difference of marginal social cost (MSC) to marginal private cost (MPC) (Figure 1).
The latest funding will help the construction and operation of pilot plants for the projects, which are also being supported with $156 million in private cost sharing.
The authors assume that subjects do not only value the direct benefit of public consumption and the private cost associated with contributions; individuals are also assumed to derive utility from fulfilling social norms related to the expected contribution by others and other's average contribution in the previous round.
Hypothesis 1: Social cost of basic education per pupil differs significantly from private cost of basic education per pupil in Lagos.
private cost, the excess burden, which shifts consumer's choices

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