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What is cost?

Answer and explanation

Correct answer: Expense incurred to make a product or provide a service

Cost is the expenditure or sacrifice of resources incurred to produce a good, provide a service, or carry out a business activity. It may include materials, labour, transport, rent, utilities, and other relevant expenses. Therefore option A is correct. Profit is the surplus after income and costs are compared, not the same as cost.

Related tags

CostExpensesConceptCharacteristics And Objectives Of BusinessConcept Characteristics And Objectives Of BusinessBusinessTrade And CommerceBusiness Trade And CommerceBusiness StudiesClass 11 Mcq

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