key term - Costs

Definition

Costs represent the monetary value of resources consumed or efforts made to achieve a particular business objective, including production, operation, and delivery of services. They can be direct or indirect and vary depending on the nature and scale of business activities.

Related terms

Fixed Costs: Fixed costs are expenses that remain constant regardless of the level of production or sales activities, such as rent or salaries.

Variable Costs: Variable costs change in proportion to the level of production output, such as raw materials and labor.

Overhead:

Overhead refers to ongoing business expenses not directly attributed to creating a product or service but necessary for running the business, like utilities and administrative salaries