Cost

In production, research, retail, together with accounting, a live is the improvement of money that has been used up to earn something or deliver the service, in addition to hence is not available for ownership anymore. In business, the constitute may be one of acquisition, in which effect the amount of money expended to acquire it is counted as cost. In this case, money is the input that is gone in outline to acquire the thing. This acquisition cost may be the or done as a reaction to a question 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 a thing that is caused or produced by something else of a process or as a differential for the result of a decision. Hence cost is the metric used in the indications modeling paradigm applied to economic processes.

Costs pl. are often further specified based on their timing or their applicability.

Manufacturing costs vs. non-manufacturing costs

Manufacturing costs are those costs that are directly involved in manufacturing of products. Examples of manufacturing costs put raw materials costs and charges related to workers. Manufacturing cost is shared into three broad categories:

Non-manufacturing costs are those costs that are not directly incurred in manufacturing a product. Examples of such(a) costs are salary of sales personnel and advertising expenses. Generally, non-manufacturing costs are further classified into two categories: