total cost

Also found in: Acronyms, Wikipedia.

Total cost

The price paid for a security plus the broker's commission and any accrued interest that is owed to the seller (in the case of a bond).
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

All In Cost

The total cost of a transaction after commissions, interest rates, and other expenses. For example, a student loan has a principal and interest rate, but the all in cost may include an origination fee, a federal default fee, and other expenses.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

total cost

The total amount of money expended to establish an investment position. Total cost includes commissions, accrued interest, and taxes, in addition to the principal amount of securities traded.
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.
Total costclick for a larger image
Fig. 185 Total cost

total cost

the COST of all the FACTORS OF PRODUCTION used by a firm in producing a particular level of output. In the SHORT RUN, a firm's total cost consists of total FIXED COST and total VARIABLE COST.

The short-run total cost curve in Fig. 185 is the sum of the (constant) total fixed costs and the total variable cost. It has an S shape because at low levels of output total variable costs rise slowly (because of the influence of increasing RETURNS TO THE VARIABLE-FACTOR INPUT) while at high levels of output total variable costs rise more rapidly (because of the influence of diminishing returns to the variable-factor input).

Total cost interacts with TOTAL REVENUE in determining the level of output at which the firm achieves its objective of PROFIT MAXIMIZATION and LOSS MINIMIZATION.

In the THEORY OF MARKETS, a firm will leave a market if in the short run it cannot earn sufficient total revenue to cover its total variable costs. If it can generate enough total revenue to cover total variable costs and make some contribution towards total fixed costs, then it will continue to produce in the short run even though it is still making a LOSS. In the LONG RUN, the firm must earn enough total revenue to cover total variable and total fixed costs (including NORMAL PROFIT) or it will leave the market. See

MARGINAL COST. total domestic expenditure the total expenditure by residents of a country on FINAL PRODUCTS (excluding expenditure on INTERMEDIATE PRODUCTS). When expenditure on IMPORTS is deducted from this figure and expenditure by nonresidents on domestically produced goods and services is added (EXPORTS), the adjusted expenditure provides an estimate of GROSS NATIONAL PRODUCTS. See also NATIONAL INCOME ACCOUNTS.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Moreover, Rs300 million have been set aside for establishment of a new campus of National University of Technology (total cost Rs2.9bn) and Rs400m for establishment of Pak-China National Research Centre on Earth Sciences at Quaid-i-Azam University (total cost Rs3.5bn with a Chinese share of 150m Yuan) and Rs50 million for establishment of a women campus of Kohat University of Science and Technology (total cost Rs986.98m).
The total cost of the scheme is Rs3 billion and it has not get full funding in the last three years.
The new Total Cost of Care Model went into effect on Jan.
According to the report, 38 projects were implemented in the local development sector at a total cost of EGP 217.5m.
Kebili was able to obtain financing in the order of 216 thousand dinars out of a total cost of about 766 thousand dinars.
The revised cost, which still might not be the final one, is 53.46 per cent higher than the total cost of Punjab's most expensive mass transit project ndash the Rawalpindi-Islamabad Metro Bus ndash that was completed at a cost of Rs44.31 billion.
The project will be implemented through a public-private partnership with a total cost of P2.34 billion.
35.2 billion but the total cost of Rs.38.9 with the space to reduce the total cost up to 2 to 3 billion.
The General Authority for Regulating the Telecommunications sector (TRA) adopted an effective cost management program aimed at reducing total cost through improved planning and utilization mechanisms.
The list of items to be purchased, using the P3,085,179 ordered released by Codilla includes a CCTV system comprised of 17 cameras, two antennas, 16 hard disks, network keyboard, seven monitors, three switchboards, six rolls of UTP cable, four units of uninterrupted power supply units, three control cabinets, and miscellaneous installation materials for a total cost of P1.569 million.
2014, PFIN, 3rd edition, Southwestern Cengage Learning and Keown 2013, Personal Finance: Turning Money Into Wealth, 6th edition, Pearson High Education among others) is to compare the total cost of leasing or renting to the total cost of buying over multiple lease or rent periods.

Full browser ?