File:Ledger.png · Wikimedia Commons · See Wikimedia Commons
monetary cost
Sign in to saveAlso known as expense
Cost is the value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore. In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it is counted as cost. In this case, money is the input that is gone in order to acquire the thing. This acquisition cost may be the sum of the cost of production as incurred by the original producer, and further costs of transaction as incurred by the acquirer over and above the price paid to the producer. Usually, the price also includes a mark-up for profi
Monetary cost is the amount of money spent to produce something or deliver a service, which is then no longer available for other uses. It matters in business because understanding these costs—whether they're production expenses, acquisition prices, or transaction fees—helps determine the true financial investment required and often influences the price charged to customers.
AI-generated from the Wikipedia summary — may contain errors.
Wikidata facts
Show 1 more fact
- Commons category
- Costs
Sources (3)
via Wikidata · CC0
~6 min read
Article
9 sectionsContents
- Types of accounting costs
- Comparing private, external, and social costs
- Cost estimation
- Manufacturing costs vs. non-manufacturing costs
- Other costs
- See also
- Notes
- References
- External links
Cost is the value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore. In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it is counted as cost. In this case, money is the input that is gone in order to acquire the thing. This acquisition cost may be the sum of the cost of production as incurred by the original producer, and further costs of transaction as incurred by the acquirer over and above the price paid to the producer. Usually, the price also includes a mark-up for profit over the cost of production.
More generalized in the field of economics, cost is a metric that is totaling up as a result of a process or as a differential for the result of a decision. Hence cost is the metric used in the standard modeling paradigm applied to economic processes.