Cost definition: Copy, customize, and use instantly
Introduction
The term "Cost" refers to the monetary value of resources expended in the production or acquisition of goods, services, or assets. In contracts, it is often used to define the financial obligations or expenditures that must be accounted for. Below are various examples of how "Cost" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Cost" as total expenditure
This definition ties "Cost" to the total expenditure involved in a transaction.
"Cost" means the total monetary amount spent, including all direct and indirect expenses, required to produce or acquire goods or services.
Definition of "Cost" as production expenses
This definition connects "Cost" to production expenses.
"Cost" refers to the expenses incurred in the production process, including labor, materials, overhead, and other costs directly associated with manufacturing or assembly.
Definition of "Cost" as fixed expenses
This definition links "Cost" to fixed expenses.
"Cost" means the fixed expenses that do not vary with the volume of goods or services produced, including rent, salaries, and insurance.
Definition of "Cost" as variable expenses
This definition ties "Cost" to variable expenses.
"Cost" refers to the expenses that change in direct proportion to the production or sales volume, such as raw materials, utilities, and commissions.
Definition of "Cost" as acquisition price
This definition connects "Cost" to acquisition price.
"Cost" means the total price paid to acquire goods, services, or assets, including purchase price, shipping, installation, and any associated fees.
Definition of "Cost" as labor-related expenses
This definition links "Cost" to labor-related expenses.
"Cost" refers to all expenses associated with labor, including wages, benefits, training, and compensation related to employees or contractors.
Definition of "Cost" as capital investment
This definition ties "Cost" to capital investment.
"Cost" means the total amount of capital invested in acquiring, constructing, or improving assets, including both tangible and intangible assets.
Definition of "Cost" as overhead expenses
This definition connects "Cost" to overhead expenses.
"Cost" refers to overhead expenses, including rent, utilities, administrative salaries, and other costs necessary to maintain a business’s operations.
Definition of "Cost" as operational expenses
This definition links "Cost" to operational expenses.
"Cost" means the expenses incurred in the day-to-day running of a business, such as supplies, inventory, and other items required for regular operations.
Definition of "Cost" as total cost of ownership
This definition ties "Cost" to total cost of ownership.
"Cost" refers to the total cost of ownership, which includes not only the purchase price but also maintenance, operational costs, and disposal expenses over the life of an asset.
Definition of "Cost" as additional charges
This definition connects "Cost" to additional charges.
"Cost" means any additional charges associated with a service or product, including shipping fees, taxes, installation charges, or regulatory fees.
Definition of "Cost" as marketing expenses
This definition links "Cost" to marketing expenses.
"Cost" refers to all expenses associated with marketing and promoting a product or service, including advertising, promotional materials, and public relations costs.
Definition of "Cost" as research and development costs
This definition ties "Cost" to research and development costs.
"Cost" means the expenses associated with the research and development of new products, services, or technologies, including labor, materials, and equipment.
Definition of "Cost" as environmental compliance expenses
This definition connects "Cost" to environmental compliance.
"Cost" refers to the expenses incurred to meet environmental regulations and standards, including waste management, emissions control, and sustainability initiatives.
Definition of "Cost" as depreciation
This definition links "Cost" to depreciation.
"Cost" means the allocation of the total purchase price of an asset over its useful life, reflecting the decline in value due to wear and tear or obsolescence.
Definition of "Cost" as finance charges
This definition ties "Cost" to finance charges.
"Cost" refers to the interest, fees, and other charges associated with financing the purchase of goods, services, or assets, including loan interest and credit card fees.
Definition of "Cost" as selling price
This definition connects "Cost" to selling price.
"Cost" means the price at which goods or services are sold, excluding taxes and delivery charges, often used to calculate profit margins.
Definition of "Cost" as tax liabilities
This definition links "Cost" to tax liabilities.
"Cost" refers to the tax liabilities incurred by a business or individual in relation to income, property, or sales, including federal, state, and local taxes.
Definition of "Cost" as transaction fees
This definition ties "Cost" to transaction fees.
"Cost" means the fees paid in connection with financial transactions, including processing fees, service charges, and broker commissions.
Definition of "Cost" as capital expenditures
This definition connects "Cost" to capital expenditures.
"Cost" refers to the expenses related to acquiring, upgrading, or maintaining fixed assets like equipment, machinery, or infrastructure.
Definition of "Cost" as compliance costs
This definition links "Cost" to compliance costs.
"Cost" means the costs incurred to comply with legal, regulatory, or industry standards, including audits, inspections, and certification processes.
Definition of "Cost" as administrative costs
This definition ties "Cost" to administrative costs.
"Cost" refers to the administrative costs associated with running an organization, including office supplies, clerical staff wages, and office equipment.
Definition of "Cost" as insurance premiums
This definition connects "Cost" to insurance premiums.
"Cost" means the premiums paid for various types of insurance, such as health insurance, property insurance, and liability coverage.
Definition of "Cost" as training and development expenses
This definition links "Cost" to training and development expenses.
"Cost" refers to the expenses associated with training and developing employees, including tuition, training materials, and instructor fees.
Definition of "Cost" as opportunity cost
This definition ties "Cost" to opportunity cost.
"Cost" refers to the potential benefits lost when one option is chosen over another, considering the next best alternative.
Definition of "Cost" as distribution costs
This definition connects "Cost" to distribution costs.
"Cost" means the expenses related to the distribution of products, including warehousing, shipping, and logistics costs.
Definition of "Cost" as contingent costs
This definition links "Cost" to contingent costs.
"Cost" refers to expenses that depend on future events or conditions, such as penalties, fines, or contingent liabilities.
Definition of "Cost" as customer acquisition cost
This definition ties "Cost" to customer acquisition cost.
"Cost" refers to the total expenses incurred in acquiring a new customer, including marketing, sales, and promotional costs.
Definition of "Cost" as production overhead
This definition connects "Cost" to production overhead.
"Cost" means the indirect costs incurred in the production process, including utilities, supervisory salaries, and factory maintenance.
Definition of "Cost" as compliance-related costs
This definition links "Cost" to compliance-related costs.
"Cost" refers to expenses related to adhering to legal and regulatory requirements, including legal fees, compliance audits, and documentation costs.
Definition of "Cost" as financial burden
This definition ties "Cost" to financial burden.
"Cost" means the financial burden borne by an individual or organization as a result of a transaction, investment, or financial obligation.
Definition of "Cost" as overhead and administrative costs
This definition connects "Cost" to overhead and administrative costs.
"Cost" refers to overhead and administrative costs that are incurred to support the business’s operations, excluding direct production or service-related expenses.
Definition of "Cost" as equipment maintenance cost
This definition links "Cost" to equipment maintenance.
"Cost" refers to the expenses associated with maintaining and repairing equipment, including labor, parts, and service contracts.
Definition of "Cost" as environmental cost
This definition ties "Cost" to environmental cost.
"Cost" means the expenses related to minimizing or mitigating the environmental impact of business activities, such as waste management and pollution control.
Definition of "Cost" as research cost
This definition connects "Cost" to research cost.
"Cost" refers to the expenses incurred in the research process, including data collection, analysis, and laboratory resources.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.