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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 ?
COMBINING COST SEGREGATION AND SECTION 1031 exchange allows taxpayers to defer the maximum amount of income taxes.
Obese people experience 49 percent more inpatient hospital days, which results in 36 percent higher costs to their health plans.
First year SPS capital costs are about half the traditional storage costs and they approach one-third the cost of traditional systems after the first year.
Cost segregation (or "Cost Seg," as it is commonly known) is a potent strategy for increasing after-tax cash flow.
The ability to accurately determine those estimated costs could help the estimator/bidder avoid the estimating disasters encountered by most demolition contractors with experience bidding on diversified projects.
Lieberman and Haar also examine K-12 education costs that are absorbed by other agencies of government (including higher education) as well as the costs of revenue collection and the disincentive effects associated with levying taxes to pay for the schools (what economists term "deadweight loss").
263(a)-4 essentially follows three steps: (a) what intangibles fall within its scope; (b) what activities with respect to those intangibles require capitalization; and (c) what costs relating to those activities must be capitalized.
Unfortunately, many financial analyses of CIS count avoided costs as true cost savings.
Escalating compliance costs for regulatory mandates, particularly those related to workplace safety, pollution abatement and corporate governance.
He also recommends equipment that minimizes shearing of material, minimizing knife jams, and making sure that a maximum amount of material enters the bale chamber prior to each stroke to minimize the number of strokes per bale to lower energy costs per ton of material.
It is clear that courts have the authority to shift attorney-review costs from nonparty subpoena recipients onto requesting parties, and in the world of paper discovery such shifting did happen.
For costs allocated to building, a deduction will be allowed under Sec.