Question: What Do You Mean By Cost?

What are the 3 types of cost?

Types of costsFixed costs.

Fixed costs are costs that do not vary with the level of output in the short term.Variable costs.

A variable cost varies in direct proportion with the level of output.

Semi-variable costs.

Total costs.

Direct costs.

Indirect costs..

What is the example of cost?

A direct cost includes raw materials, labor, and expense or distribution costs associated with producing a product. The cost can easily be traced to a product, department, or project. For example, Ford Motor Company (F) manufactures cars and trucks. A plant worker spends eight hours building a car.

What is another word for time?

What is another word for time?momentoccasionpoint in timestagedatedayhourminutesecondperiod22 more rows

Is rent a fixed cost?

Unlike variable costs, a company’s fixed costs do not vary with the volume of production. Fixed costs remain the same regardless of whether goods or services are produced or not. … The most common examples of fixed costs include lease and rent payments, utilities, insurance, certain salaries, and interest payments.

What do you mean by the term cost?

In production, research, retail, and accounting, a 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. … Usually, the price also includes a mark-up for profit over the cost of production.

What is costing in simple words?

Costing is any system for assigning costs to an element of a business. Costing is typically used to develop costs for any or all of the following: Customers. Distribution channels.

What is another word for cost?

Synonyms of costcharge,disbursement,expenditure,expense,outgo,outlay.

What is the importance of costing?

Government: Costing helps the government when assessing for income tax or any other such government liabilities. It also helps set industry standards and helps with price fixing, tariff plans, cost control etc. Customers: The main aims of costing are cost control and improvement in efficiency.

What’s another word for cost effective?

cost-beneficial, cost-efficiently, lower-cost, lucrative, productive, feasible, cost-cutting, least-cost, uneconomical, uneconomic, competitive, budget-friendly, well-functioning, unprofitable, convenient, well-performing, attractive, high-efficiency, rewarding, budget-conscious, rational, profit-making, optimal, …

What type of cost is rent?

Rent expense is a type of fixed operating cost or an absorption cost for a business, as opposed to a variable expense. Rental expenses are often subject to a one- or two-year contract between the lessor and lessee, with options to renew.

What is your concept of cost?

In general terms, cost refers to an amount to be paid or given up for acquiring any resource or service. … In economics, cost can be defined as a monetary valuation of efforts, material, resources, time and utilities consumed, risks incurred, and opportunity forgone in the production of a good or service.

What are the 4 types of cost?

Following this summary of the different types of costs are some examples of how costs are used in different business applications.Fixed and Variable Costs.Direct and Indirect Costs. … Product and Period Costs. … Other Types of Costs. … Controllable and Uncontrollable Costs— … Out-of-pocket and Sunk Costs—More items…•

What is the purpose of costing?

The main objective of cost accounting are ascertainment of cost, fixation of selling price, proper recording and presentation of cost data to management for measuring efficiency and for cost control and cost reduction, ascertaining the profit of each activity, assisting management in decision making process.

Whats the opposite of cost?

What is the opposite of cost?paymentrepaymentremittancesettlementdefrayal

Is rent a sunk cost?

A sunk cost refers to a cost that has already occurred and has no potential for recovery in the future. For example, your rent, marketing campaign expenses or money spent on new equipment can be considered sunk costs.