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.
Frequently asked questions
What is the correct answer to this question?
The expense incurred to produce a product or provide a service
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Sources of Business Finance. Topic: Concept, nature and importance of business finance.
