definition 1. cost 2. variable costs 4. fixed costs 5.

definition
1. cost
2. variable costs
4. fixed costs
5.

Expert Solution

1.) Cost

An amount that has to be paid or given up in order to get something. In business, the cost is usually a financial valuation of effort, material, resources, time and utilities consumed, risks incurred, and opportunity forgone in the production and delivery of a good or service. All expenses are costs, but not all costs (such as those incurred in the acquisition of an income-generating asset) are expenses.

2.) Variable cost

A periodic cost that varies in step with the output or the sales revenue of a company. Variable costs include raw material, labor, distribution costs, etc. Organizations with high variable costs are significantly different from those with high fixed costs. This difference affects the financial structure of the organization as well as its pricing and profits.

4.) Fixed Costs

A periodical cost that prevails more or less unchanged irrespective of the output level or sales revenue, such as depreciation, insurance, interest, rent, and wages.

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