Discipline: Economics

Cost is the sacrifice one makes, usually in terms of money, in order to either acquire or produce certain goods and services.

Cost does not mean expense, although the two terms are very similar. A person bears costs in an effort to gain satisfaction from an acquisition or make profit by adding value in a process of production. Expense, on the other hand, does not necessarily benefit the person who bears it.

Also see: constant-cost industry, cost center, cost control, cost effective, cost function, expansion costs


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