You do not have permission to edit this page, for the following reasons:

This IP address has been blocked from editing Wikipedia.
This does not affect your ability to read Wikipedia pages.
Most people who see this message have done nothing wrong. Some kinds of blocks restrict editing from specific service providers or telecom companies in response to recent abuse or vandalism, and can sometimes affect other users who are unrelated to that abuse. Review the information below for assistance if you do not believe that you have done anything wrong.

The IP address or range 34.205.0.0/16 has been blocked (disabled) by ‪ST47‬ for the following reason(s):

The IP address that you are currently using has been blocked because it is believed to be a web host provider. To prevent abuse, web hosts may be blocked from editing Wikipedia.
You will not be able to edit Wikipedia using a web host provider because it hides your IP address, much like a proxy or VPN.
We recommend that you attempt to use another connection to edit. For example, if you use a proxy or VPN to connect to the internet, turn it off when editing Wikipedia. If you edit using a mobile connection, try using a Wi-Fi connection, and vice versa. If you are using a corporate internet connection, switch to a different Wi-Fi network. If you have a Wikipedia account, please log in.
If you do not have any other way to edit Wikipedia, you will need to request an IP block exemption.

How to appeal if you are confident that your connection does not use a web host's IP address:
If you are confident that you are not using a web host, you may appeal this block by adding the following text on your talk page: ((unblock|reason=Caught by a web host block but this host or IP is not a web host. My IP address is _______. Place any further information here. ~~~~)). You must fill in the blank with your IP address for this block to be investigated. Your IP address can be determined here. Alternatively, if you wish to keep your IP address private you can use the unblock ticket request system. There are several reasons you might be editing using the IP address of a web host (such as if you are using VPN software or a business network); please use this method of appeal only if you think your IP address is in fact not a web host.

Administrators: The IP block exemption user right should only be applied to allow users to edit using web host in exceptional circumstances, and they should usually be directed to the functionaries team via email. If you intend to give the IPBE user right, a CheckUser needs to take a look at the account. This can be requested most easily at SPI Quick Checkuser Requests. Unblocking an IP or IP range with this template is highly discouraged without at least contacting the blocking administrator.

This block will expire on 05:44, 30 September 2026.

Even when blocked, you will usually still be able to edit your user talk page, as well as email administrators and other editors.

For information on how to proceed, please read the FAQ for blocked users and the guideline on block appeals. The guide to appealing blocks may also be helpful.

Other useful links: Blocking policy · Help:I have been blocked
Your IP address is in a range that has been blocked on all Wikimedia Foundation wikis. The block was made by ‪Jon Kolbert‬. The reason given is Open proxy/Webhost: See the help page if you are affected .
- Start of block: 05:38, 21 February 2024
- Expiry of block: 05:38, 21 February 2029
Your current IP address is 34.205.141.108. The blocked range is 34.205.0.0/16. Please include all above details in any queries you make. If you believe you were blocked by mistake, you can find additional information and instructions in the No open proxies global policy. Otherwise, to discuss the block please post a request for review on Meta-Wiki. You could also send an email to the stewards VRT queue at stewards@wikimedia.org including all above details.

You can view and copy the source of this page:

((Short description|Money spent to produce or procure goods or services))
((Other uses))
((redirect|Expensive|the song by Ty Dolla Sign featuring Nicki Minaj|Expensive (song)))
((accounting))
'''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 [[performance metric|metric]] that is totaling up as a result of a process or as a differential for the result of a [[Decision making|decision]].<ref>((cite book
  | last = O'Sullivan
  | first = Arthur
  | author-link = Arthur O'Sullivan (economist)
  | first2 = Steven M. | last2 = Sheffrin
  | title = Economics: Principles in Action
  | url = https://archive.org/details/economicsprincip00osul
  | url-access = limited
  | publisher = Pearson Prentice Hall
  | year = 2003
  | location = Upper Saddle River, New Jersey
  | page = [https://archive.org/details/economicsprincip00osul/page/n32 16]
  | isbn = 0-13-063085-3))</ref>  Hence cost is the metric used in the standard [[Business process modelling|modeling]] [[paradigm]] applied to economic [[Business process|processes]].

Costs (pl.) are often further described based on their timing or their applicability.

==Types of accounting costs ==
((main|accounting cost|opportunity cost|historical cost|marginal cost|sunk cost|standard cost accounting))

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.<ref>((Cite web |last=Reviso |title=What is cost? |url=https://www.reviso.com/cost/))</ref> It is the amount denoted on [[invoice]]s as the [[price]] and recorded in [[book keeping]] records as an [[expense]] or asset [[cost basis]].

[[Opportunity cost]], also referred to as ''[[economic cost]]'' 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.<ref>((Cite web |title=Opportunity Cost: Definition, Calculation Formula, and Examples |url=https://www.investopedia.com/terms/o/opportunitycost.asp |access-date=2024-01-30 |website=Investopedia |language=en))</ref>

In theoretical economics, '''cost''' used without qualification often means opportunity cost.<ref>((cite web|title=CCP Exam Dumps|url=https://www.dumpsbook.com/Exam/CCP|access-date=1 March 2018|archive-date=29 September 2020|archive-url=https://web.archive.org/web/20200929063937/https://dumpsbook.com/Exam/CCP|url-status=dead))</ref>

==Comparing private, external, and social costs==
((main| Externality|social cost))When a transaction takes place, it typically involves both private costs and external costs.

'''Private costs''' are the costs that the buyer of a good or service pays the seller.<ref>((Cite web |title=Private cost - Energy Education |url=https://energyeducation.ca/encyclopedia/Private_cost#:~:text=The%20private%20cost%20is%20any,a%20result%20of%20the%20production. |access-date=2024-01-30 |website=energyeducation.ca))</ref> This can also be described as the costs internal to the firm's [[production function]].

[[Externality|External costs]] (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.<ref>((Cite web |title=External Cost |url=https://www.tutor2u.net/economics/topics/external-cost |access-date=2024-01-30 |website=www.tutor2u.net |language=en))</ref> 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.

[[Social cost]]s are the sum of private costs and external costs.<ref>((Cite web |title=Social Cost |url=https://www.economicshelp.org/blog/glossary/social-cost/ |access-date=2024-01-30 |website=Economics Help |language=en-GB))</ref>

For example, the manufacturing cost of a car (i.e., the costs of buying inputs, land tax rates for the car plant, [[Overhead (business)|overhead costs]] of running the plant and labor costs) reflects the ''private cost'' 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.&nbsp;181). The polluted waters or polluted air also created as part of the process of producing the car is an ''external cost'' 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 [[Kaldor–Hicks efficiency|Kaldor–Hicks compensation]]), they are said to be external to the market pricing mechanism. The air pollution from driving the car is also an externality produced by the car user in the process of using his good. The driver does not compensate for the [[environmental degradation|environmental damage]] caused by using the car.

==Cost estimation==
((Main|Cost estimation|Cost overrun|parametric estimating))

When developing a [[business plan]] for a new or existing company, product or project, planners typically make cost estimates in order to assess whether [[revenue]]s/benefits will cover costs (see [[cost–benefit analysis]]). This is done in both business and government. Costs are often underestimated, resulting in [[cost overrun]] during execution.

''Cost-plus pricing'' is where the price equals cost plus a percentage of overhead or profit margin. In [[business economics]], the profitability of a trade or sales prospect relies on the ability of an enterprise to sustain [[Price#Market price|market prices]] that cover all costs and leave a [[Economic surplus#Producer surplus|surplus]] for owner interest, as expressed by: 

<math>\text{Profit = Revenues – Costs}</math>((efn|[[Gross income|Gross profit]] is revenue minus the [[Cost of goods sold|cost of goods sold]].<ref>((cite web |title=Revenue vs. Profit: What's the Difference? |url=https://www.investopedia.com/ask/answers/122214/what-difference-between-revenue-and-profit.asp |publisher=Investopedia))</ref>))

== Manufacturing costs vs. non-manufacturing costs ==
'''[[Manufacturing cost]]s''' are those costs that are directly involved in [[manufacturing]] of products.<ref>((Cite web |title=Production Costs vs. Manufacturing Costs: What's the Difference? |url=https://www.investopedia.com/ask/answers/042715/whats-difference-between-production-cost-and-manufacturing-cost.asp |access-date=2024-01-30 |website=Investopedia |language=en))</ref> Examples of manufacturing costs include [[raw materials]] costs and charges related to workers. Manufacturing cost is divided into three broad categories:<ref>((Cite web |title=Total manufacturing cost: What is it and how to calculate it |url=https://www.oneadvanced.com/news-and-opinion/total-manufacturing-cost-what-is-it-and-how-to-calculate-it/ |access-date=2024-01-30 |website=Advanced |language=en))</ref>

#[[Direct materials cost]].
#[[Direct labor cost]].
#[[Manufacturing overhead cost]].
 
Non-manufacturing costs are those costs that are not directly incurred in manufacturing a [[product (business)|product]].<ref>((Cite web |date=2021-02-27 |title=2.3: Cost Terminology |url=https://biz.libretexts.org/Courses/Folsom_Lake_College/ACCT_311%3A_Managerial_Accounting_(Black)/02%3A_Types_of_Costs/2.03%3A_Cost_Terminology |access-date=2024-01-30 |website=Business LibreTexts |language=en))</ref> Examples of such costs are salary of sales [[personnel]] and [[advertising]] expenses. Generally, non-manufacturing costs are further classified into two categories:<ref>((Cite web |last=Bragg |first=Steven |date=2023-10-08 |title=Nonmanufacturing overhead costs definition |url=https://www.accountingtools.com/articles/nonmanufacturing-overhead-costs-definition |access-date=2024-01-30 |website=AccountingTools |language=en-US))</ref>

#Selling and distribution costs.
#[[Administration of business|Administrative]] costs.

==Other costs==
((Unreferenced section|date=June 2023))

A '''defensive cost''' is an environmental expenditure to eliminate or prevent environmental damage. Defensive costs form part of the [[Genuine progress indicator|genuine progress indicator (GPI)]] calculations.

Labour '''costs''' would include travel time, holiday pay, training costs, working clothes, social insurance, taxes on employment &c.

'''Path cost''' is a term in networking to define the worthiness of a path, see [[Routing]].

==See also==
((div col|colwidth=22em))
* [[Average cost]]
* [[Cost accounting]]
* [[Cost curve]]
* [[Cost object]]
* [[Direct cost]]
* [[Fixed cost]]
* [[Incremental cost]]
* [[Indirect cost]]
* [[Whole-life cost|Life-cycle cost]]
* [[Outline of industrial organization]]
* [[Repugnancy costs]]
* [[Semi-variable cost]]
* [[Total cost]]
* [[Variable cost]]
((div col end))

==Notes==
((Notelist))

==References==
((Reflist))

((Commons category|Costs))
((Wiktionary|cost|time-consuming))

((Authority control))

[[Category:Costs| ]]

Pages transcluded onto the current version of this page (help):

Cost (edit)
Expensive (edit)
Template:Accounting (edit)
Template:Accounting/styles.css (edit)
Template:Ambox (view source) (template editor protected)
Template:Authority control (view source) (template editor protected)
Template:Cite book (view source) (protected)
Template:Cite web (view source) (protected)
Template:Commons category (view source) (template editor protected)
Template:Div col (view source) (template editor protected)
Template:Div col/styles.css (view source) (template editor protected)
Template:Div col end (view source) (template editor protected)
Template:Efn (view source) (template editor protected)
Template:Hlist (view source) (protected)
Template:Hlist/styles.css (view source) (protected)
Template:Main (view source) (template editor protected)
Template:Main other (view source) (protected)
Template:Notelist (view source) (template editor protected)
Template:Other uses (view source) (template editor protected)
Template:Pagetype (view source) (protected)
Template:Plainlist/styles.css (view source) (protected)
Template:Redirect (view source) (template editor protected)
Template:Reflist (view source) (protected)
Template:Reflist/styles.css (view source) (protected)
Template:Replace (view source) (protected)
Template:SDcat (view source) (protected)
Template:Short description (view source) (protected)
Template:Short description/lowercasecheck (view source) (protected)
Template:Side box (view source) (template editor protected)
Template:Sidebar with collapsible lists (view source) (template editor protected)
Template:Sister project (view source) (template editor protected)
Template:Tooltip (view source) (template editor protected)
Template:Tooltip/styles.css (view source) (template editor protected)
Template:Unreferenced (view source) (template editor protected)
Template:Unreferenced section (view source) (template editor protected)
Template:Wiktionary (view source) (template editor protected)
Template:Yesno (view source) (protected)
Template:Yesno-no (view source) (template editor protected)
Template:Yesno-yes (view source) (template editor protected)
Template:\ (view source) (template editor protected)
Module:Arguments (view source) (protected)
Module:Authority control (view source) (template editor protected)
Module:Authority control/config (view source) (template editor protected)
Module:Category handler (view source) (protected)
Module:Category handler/blacklist (view source) (protected)
Module:Category handler/config (view source) (protected)
Module:Category handler/data (view source) (protected)
Module:Category handler/shared (view source) (protected)
Module:Check for unknown parameters (view source) (protected)
Module:Citation/CS1 (view source) (protected)
Module:Citation/CS1/COinS (view source) (protected)
Module:Citation/CS1/Configuration (view source) (protected)
Module:Citation/CS1/Date validation (view source) (protected)
Module:Citation/CS1/Identifiers (view source) (protected)
Module:Citation/CS1/Utilities (view source) (protected)
Module:Citation/CS1/Whitelist (view source) (protected)
Module:Citation/CS1/styles.css (view source) (protected)
Module:Disambiguation/templates (view source) (protected)
Module:EditAtWikidata (view source) (protected)
Module:Format link (view source) (template editor protected)
Module:Hatnote (view source) (template editor protected)
Module:Hatnote/styles.css (view source) (template editor protected)
Module:Hatnote list (view source) (template editor protected)
Module:Labelled list hatnote (view source) (template editor protected)
Module:List (view source) (protected)
Module:Message box (view source) (protected)
Module:Message box/ambox.css (view source) (protected)
Module:Message box/configuration (view source) (protected)
Module:Namespace detect/config (view source) (protected)
Module:Namespace detect/data (view source) (protected)
Module:Navbar (view source) (protected)
Module:Navbar/configuration (view source) (protected)
Module:Navbar/styles.css (view source) (protected)
Module:Navbox (view source) (template editor protected)
Module:Navbox/configuration (view source) (template editor protected)
Module:Navbox/styles.css (view source) (template editor protected)
Module:Other uses (view source) (template editor protected)
Module:Pagetype (view source) (protected)
Module:Pagetype/config (view source) (protected)
Module:Pagetype/disambiguation (view source) (protected)
Module:Pagetype/setindex (view source) (protected)
Module:Pagetype/softredirect (view source) (protected)
Module:Redirect hatnote (view source) (template editor protected)
Module:SDcat (view source) (protected)
Module:Side box (view source) (template editor protected)
Module:Side box/styles.css (view source) (template editor protected)
Module:Sidebar (view source) (template editor protected)
Module:Sidebar/configuration (view source) (template editor protected)
Module:Sidebar/styles.css (view source) (template editor protected)
Module:String (view source) (protected)
Module:TableTools (view source) (protected)
Module:Unsubst (view source) (protected)
Module:WikidataIB (view source) (template editor protected)
Module:WikidataIB/nolinks (view source) (template editor protected)
Module:WikidataIB/titleformats (view source) (template editor protected)
Module:Wikitext Parsing (view source) (protected)
Module:Yesno (view source) (protected)

Return to Cost.

Retrieved from "https://en.wikipedia.org/wiki/Cost"