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Simple English definitions for legal terms
cost
Read a random definition: case reserved
A quick definition of cost:
Cost: The amount of money you have to pay for something. It can include the price of the item and any other expenses related to it, like shipping or advertising. Some costs are fixed, meaning they stay the same no matter how much you buy, while others are variable and change depending on how much you buy. Once you pay a cost, you can't get that money back, even if you don't end up using the item or service you paid for.
A more thorough explanation:
Cost refers to the amount of money paid or charged for something, including expenses and prices. It can also refer to the expenditure of resources, such as time and effort, to produce or acquire something.
- Aboriginal cost: The cost of an asset incurred by the first company to use it for public utilities.
- Fixed cost: A cost that remains the same regardless of changes in output or business activity, such as rent, salaries, and depreciation.
- Variable cost: A cost that changes in the short run in close relationship with changes in output, such as the cost of materials and labor to produce a product.
- Opportunity cost: The cost of acquiring an asset measured by the value of an alternative investment that is forgone, such as the cost of investing in equipment instead of bonds.
- Transaction cost: A cost connected with a process transaction, such as a broker's commission or the cost involved in litigating a dispute.
These examples illustrate how cost can refer to different types of expenses and expenditures, including those related to production, acquisition, and litigation. They also show how cost can be influenced by various factors, such as output, business activity, and alternative investments.