What is Cost?

Cost is the metric used in the standard modelling paradigm applied to economic processes. A cost is the value of money which to be paid for any getting services or products. Costs are the monetary value of expenditures for supplies, services, labour, products, and equipment. In the process of a transaction takes place, it typically involves both private costs and external costs. Costs are often underestimated, resulting in cost overrun during execution. Manufacturing costs are those costs that are directly involved in manufacturing of the product. Manufacturing cost is divided into three broad categories: Direct materials cost, direct labour cost and manufacturing cost.

Facts about Cost:

  1. The non-discretionary fixed costs regardless of variations in production.
  2. Basis accounting includes total production costs and the cost of goods sold.
  3. Fixed costs always factor into short- and long-term profitability.
  4. Some fixed costs affect short-term profit margins differently than others do.
  5. Only 39% of Americans could cover a $1,000 expense from savings.
  6. 62 per cent of jobs don’t pay enough to support a middle-class lifestyle.
  7. 44% saying their increased cost of living exceeds any tax cut they may have received.
  8. 70% of poor households are only intermittently poor.
  9. Women are more than eight times as likely to work poverty-level wage jobs.
  10. The Earned Income Tax Credit is one of the nation’s most effective anti-poverty policies.
  11. The costs of college and how scholarship money can be enormously helpful to students.
  12. Switzerland is one of the most expensive places to live in the world.
  13. The time invested in keeping informed will be worth the savings.
  14. The cost of goods and vegetables increases about 3-4 times of actual cost when it comes in the market.
  15. The cost of any products increase or decrease depends on the demand of the products.
  16. A defensive cost is an environmental expenditure to eliminate or prevent environmental damage.
  17. Non-manufacturing costs are further classified into two categories: Selling and distribution costs and Administrative costs.
  18. Private costs are the costs that the buyer of a good or service pays the seller.
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