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.
Frequently asked questions
What is the correct answer to this question?
Expense incurred to make a product or provide a service
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Business, Trade and Commerce. Topic: Concept, characteristics and objectives of business.
