Costs Costs Marginal cost is a term in economics. It concerns the extra expense involved for producing more units of given product. In general, marginal cost goes down as more items are produced - a fact often encompassed in the phrase " economies of scale." ...more on Wikipedia about "Average cost"
In Economics, Average fixed cost is: ...more on Wikipedia about "Average fixed cost"
Average total cost is the cost of making all of the widgets divided by the number of widgets made. If one widget costs $10,000 for the machinery plus $600 for the workforce and material, and the second widget only costs $50 (for the material) but doesn't require extra machinery or workers, the average cost for those widgets would be $5,325, the total cost ($10,650) divided by the number of widgets (2). ...more on Wikipedia about "Average total cost"
In Economics, Average variable cost is the cost a firm can vary (labor, etc.) divided by the total units of output. ...more on Wikipedia about "Average variable cost"
In economics, business, and accounting, a cost is a price paid, or otherwise associated with, a commercial event or economic transaction. ...more on Wikipedia about "Cost"
Cost accounting is the process of tracking, recording and analyzing costs associated with the activity of an organization, where cost is defined as 'required time or resources'. Costs are measured in units of currency by convention. ...more on Wikipedia about "Cost accounting"
Cost of sales is an economical term describing the sum of all expenses that directly contribute to the generation of revenue. ...more on Wikipedia about "Cost of sales"
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Cost-benefit analysis is the process of weighing the total expected costs vs. the total expected benefits of one or more actions in order to choose the best or most profitable option. ...more on Wikipedia about "Cost-benefit analysis"
In economics, cost-effectiveness refers to the comparison of the relative expenditure (costs) and outcomes (effects) associated with two or more courses of action. Cost-effectiveness is typically expressed as an incremental cost-effectiveness ratio (ICER) the ratio of change in costs : change in effects. In health economics a figure of US$50000 per quality-adjusted life year (QALY) is often suggested as the upper limit of an acceptable ICER. ...more on Wikipedia about "Cost-effectiveness"
An Explicit cost is an easy accounted cost, such as wage, rent and materials. ...more on Wikipedia about "Explicit cost"
Fixed costs are expenses whose total does not change in proportion to the activity of a business. (Indirect costs may be fixed or variable.) For example, a retailer must pay rent and utility bills irrespective of sales volumes. Fixed costs include, but are not limited to, overheads (rent, electricity, insurance, and such) but can include direct costs such as payroll (particularly salaries). ...more on Wikipedia about "Fixed cost"
In accounting terminology, historical cost describes the original cost of an asset at the time of purchase or payment as opposed to its market value (saleable value, replacement value or value in present or alternative use). ...more on Wikipedia about "Historical cost"
In economics, an implicit cost imposed on a firm includes costs when it foregoes an alternative action but doesn't make a physical payment. Such costs are related to forgone benefits of any single transaction, and occur when a firm: ...more on Wikipedia about "Implicit cost"
An Isocost is a set of input bundles each which costs the same amount. Similar to the budget constraint, the slope is -w/r or the negative ratio of wages divided by rental fees. ...more on Wikipedia about "Isocost"
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The long run average cost (LRAC or LAC) curve illustrates - for a given quantity of production - the average cost per unit which a firm faces in the long run (i.e. when no factors of production are fixed). ...more on Wikipedia about "Long run average cost"
In economics and finance, marginal cost is the change in total cost that arises when the quantity produced (or purchased) changes by one unit. ...more on Wikipedia about "Marginal cost"
Opportunity cost is a term used in economics, to mean the cost of something in terms of an opportunity forgone (and the benefits that could be received from that opportunity), or the most valuable forgone alternative. For example, if a city decides to build a hospital on vacant land that it owns, the opportunity cost is some other thing that might have been done with the land and construction funds instead. In building the hospital, the city has forgone the opportunity to build a sporting center on that land, or a parking lot, or the ability to sell the land to reduce the city's debt, and so on. ...more on Wikipedia about "Opportunity cost"
A psychic cost is a subset of social costs that specifically represent the costs of added stress or losses to quality of life. ...more on Wikipedia about "Psychic cost"
Social cost, in economics, is the total of all the costs associated with an economic activity. It includes both costs borne by the economic agent and also all costs borne by society at large. It includes the costs reflected in the organization's production function (called private costs) and the costs external to the firm's private costs (called externalities or external costs). ...more on Wikipedia about "Social cost"
In economics and in business decision-making, sunk costs are costs that have already been incurred and which cannot be recovered to any significant degree. Sunk costs are sometimes contrasted with variable costs, which are the costs that will change due to the proposed course of action. In microeconomic theory, only variable costs are relevant to a decision. If we let sunk costs influence our decisions, we will not be assessing a proposal exclusively on its own. ...more on Wikipedia about "Sunk cost"
In economics, the total cost describes the total economic cost of production and is made up of variable and fixed costs. ...more on Wikipedia about "Total cost"
In economics and related disciplines, a transaction cost is a cost incurred in making an economic exchange. For example, most people, when buying or selling a stock, must pay a commission to their broker; that commission is a transaction cost of doing the stock deal. Or consider buying a banana from a store; to purchase the banana, your costs will be not only the price of the banana itself, but also the energy and effort it requires to find out which of the various banana products you prefer, where to get them and at what price, the cost of travelling from your house to the store and back, the time waiting in line, and the effort of the paying itself; the costs above and beyond the cost of the banana are the transaction costs. When rationally evaluating a potential transaction, it is important not to neglect transaction costs that might prove significant. ...more on Wikipedia about "Transaction cost"
Variable costs or direct costs are expenses that change in direct proportion to the activity of a business. Along with fixed costs, variable costs make up one of the two components of total cost. ...more on Wikipedia about "Variable cost"
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