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What is cost in business?

Answer and explanation

Correct answer: The expense incurred to produce a product or provide a service

Cost is the expenditure a business incurs to produce goods or deliver services. It may include materials, wages, electricity, transport, rent, or other resources used in operations. The amount received from sales is revenue, the remainder after costs is profit, and the amount charged per unit is the selling price. These related terms should not be confused with cost.

Related tags

RevenueProfitConceptNature And Importance Of Business FinanceConcept Nature And Importance Of Business FinanceSources Of Business FinanceBusiness StudiesClass 11 Mcq

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