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 ?
(6) When financial intermediaries can create any cash flow stream that can be created by corporations by costlessly repackaging existing securities, in equilibrium, firms will not be able to achieve rents by creating securities that are tailored to meet the needs of investors.
Without loss of generality, taxation revenue is assumed to be costlessly collected and government failures to be non-existent so that the entire tax revenue can be spent on the environment.
Sovereigns could not costlessly appropriate all benefits from being a part of the community but would instead have to limit their appropriations based on offers made by other sovereigns.
If the actions of the agent are perfectly and costlessly observable, the principal can merely reward the agent for the "correct" action and punish the agent for the "incorrect" action.
The portfolio volatility argument also differs from formal theories of portfolio distribution in cabinets, which assume that cabinet ministers can costlessly implement their most preferred policies (Austen-Smith and Banks 1990; Laver and Shepsle 1990, 1996).
East Europeans were assumed to be rational utility maximizers who would quickly and costlessly perceive new opportunities, evaluate their consequences, and make the utility-maximizing choices.
We assume that the individual cannot easily or costlessly smooth taxable dividend income on personal account.(1)
As a result, large investors cannot exit costlessly when they are dissatisfied with a particular management's performance.(35) Rather, they are locked in -- at least in the relative sense that the sale of a large block will come at a greater discount in a less liquid market.
Of course, if consumers can change firms costlessly, such an advantage would have few interesting implications.
According to agency theory the challenge of the agency relationship arises whenever the principals (stockholders) cannot perfectly and costlessly monitor the agents' (managers) actions and information, and this, in turn, gives rise to agency cost.
Easley and O'Hara (1983), for example, show that if output is costlessly observed but effort is not, then for-profits are optimal and superior to nonprofits if for-profit managers are risk-neutral and if the contract is specified such that the manager must take on all the risk.