780:(also called externalities), in contrast, are the costs that people other than the buyer are forced to pay as a result of the transaction. The bearers of such costs can be either particular individuals or society at large. Note that external costs are often both non-monetary and problematic to quantify for comparison with monetary values. They include things like pollution, things that society will likely have to pay for in some way or at some time in the future, even so that are not included in transaction prices.
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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
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borne by those who are affected by the pollution or who value unpolluted air or water. Because the manufacturer does not pay for this external cost (the cost of emitting undesirable waste into the commons), and does not include this cost in the price of the car (a
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for the manufacturer (in some ways, normal profit can also be seen as a cost of production; see, e.g., Ison and Wall, 2007, p. 181). The polluted waters or polluted air also created as part of the process of producing the car is an
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is the value of the best alternative that was not chosen in order to pursue the current endeavor—i.e., what could have been accomplished with the resources expended in the undertaking. It represents opportunities forgone.
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In accounting, costs are the monetary value of expenditures for supplies, services, labor, products, equipment and other items purchased for use by a business or other accounting entity. It is the amount denoted on
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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
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are the costs that the buyer of a good or service pays the seller. This can also be described as the costs internal to the firm's
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would include travel time, holiday pay, training costs, working clothes, social insurance, taxes on employment &c.
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for a new or existing company, product or project, planners typically make cost estimates in order to assess whether
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For example, the manufacturing cost of a car (i.e., the costs of buying inputs, land tax rates for the car plant,
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is an environmental expenditure to eliminate or prevent environmental damage. Defensive costs form part of the
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paid to the producer. Usually, the price also includes a mark-up for profit over the cost of production.
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costs and charges related to workers. Manufacturing cost is divided into three broad categories:
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When a transaction takes place, it typically involves both private costs and external costs.
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Non-manufacturing costs are those costs that are not directly incurred in manufacturing a
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Costs (pl.) are often further described based on their timing or their applicability.
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that is totaling up as a result of a process or as a differential for the result of a
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is where the price equals cost plus a percentage of overhead or profit margin. In
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1367:"Production Costs vs. Manufacturing Costs: What's the Difference?"
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1231:"Opportunity Cost: Definition, Calculation Formula, and Examples"
1190:. Upper Saddle River, New Jersey: Pearson Prentice Hall. p.
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is a term in networking to define the worthiness of a path, see
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used without qualification often means opportunity cost.
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of products. Examples of manufacturing costs include
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793:of running the plant and labor costs) reflects the
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Money spent to produce or procure goods or services
884:{\displaystyle {\text{Profit = Revenues – Costs}}}
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786:are the sum of private costs and external costs.
657:. Hence cost is the metric used in the standard
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894:Manufacturing costs vs. non-manufacturing costs
903:are those costs that are directly involved in
938:. Examples of such costs are salary of sales
750:Comparing private, external, and social costs
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1441:"Nonmanufacturing overhead costs definition"
1353:"Revenue vs. Profit: What's the Difference?"
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999:. Unsourced material may be challenged and
319:International Financial Reporting Standards
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1019:Learn how and when to remove this message
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867:for owner interest, as expressed by:
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309:Generally-accepted auditing standards
997:adding citations to reliable sources
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324:International Standards on Auditing
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1112:Outline of industrial organization
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1281:"Private cost - Energy Education"
863:that cover all costs and leave a
645:More generalized in the field of
381:Notes to the financial statements
1037:genuine progress indicator (GPI)
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878:Profit = Revenues – Costs
841:/benefits will cover costs (see
329:Management Accounting Principles
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1186:Economics: Principles in Action
950:Selling and distribution costs.
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304:Generally-accepted principles
1439:Bragg, Steven (2023-10-08).
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742:In theoretical economics,
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811:caused by using the car.
805:Kaldor–Hicks compensation
675:Types of accounting costs
173:Constant purchasing power
70:Constant purchasing power
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701:standard cost accounting
504:Accounting organizations
492:People and organizations
1415:"2.3: Cost Terminology"
252:Amortization (business)
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732:, also referred to as
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916:Direct materials cost
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843:cost–benefit analysis
829:parametric estimating
376:Management discussion
21:Cost (disambiguation)
1261:on 29 September 2020
993:improve this section
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809:environmental damage
664:applied to economic
343:Financial statements
296:Accounting standards
19:For other uses, see
1419:Business LibreTexts
900:Manufacturing costs
772:production function
569:Earnings management
539:Positive accounting
413:Double-entry system
403:Bank reconciliation
208:Revenue recognition
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1180:O'Sullivan, Arthur
1156:cost of goods sold
1122:Semi-variable cost
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857:business economics
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833:When developing a
544:Sarbanes–Oxley Act
479:Sarbanes–Oxley Act
408:Debits and credits
243:Cost of goods sold
198:Matching principle
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853:Cost-plus pricing
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1421:. 2021-02-27
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1371:Investopedia
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1259:the original
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1235:Investopedia
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509:Luca Pacioli
430: /
250: /
248:Depreciation
156:Key concepts
128:Governmental
1087:Direct cost
1082:Cost object
961:Other costs
944:advertising
760:social cost
756:Externality
522:Development
499:Accountants
395:Bookkeeping
314:Convergence
272:Liabilities
203:Materiality
91:Major types
1450:2024-01-30
1425:2024-01-30
1400:2024-01-30
1376:2024-01-30
1338:2024-01-30
1314:2024-01-30
1290:2024-01-30
1240:2024-01-30
1166:References
1127:Total cost
1092:Fixed cost
1077:Cost curve
724:cost basis
557:Misconduct
183:Fair value
133:Management
75:Management
46:Accounting
1050:Path cost
1009:June 2023
980:does not
940:personnel
722:or asset
697:sunk cost
666:processes
647:economics
579:Hollywood
459:Financial
361:Cash-flow
118:Financial
1465:Category
1395:Advanced
1215:Reviso.
1060:See also
839:revenues
708:invoices
662:paradigm
659:modeling
655:decision
564:Creative
534:Research
464:Internal
451:Auditing
267:Goodwill
262:Expenses
113:Forensic
38:a series
36:Part of
1265:1 March
1054:Routing
1042:Labour
1001:removed
986:sources
936:product
865:surplus
720:expense
710:as the
529:History
423:Journal
282:Revenue
168:Accrual
1198:
956:costs.
827:, and
699:, and
651:metric
474:Report
428:Ledger
371:Income
366:Equity
277:Profit
257:Equity
233:Assets
138:Social
103:Budget
1471:Costs
1139:Notes
1044:costs
712:price
640:price
635:money
469:Firms
98:Audit
1267:2018
1196:ISBN
984:any
982:cite
942:and
758:and
744:cost
631:Cost
238:Cash
123:Fund
108:Cost
995:by
143:Tax
80:Tax
1467::
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