Dictionary of all accounting terms
A cost is any monetary amount that has to be paid by the business in order to achieve or produce something of value.
For business, cost is calculated as a monetary value for the following:
In accounting, on the other hands, costs are usually related to:
In business, the break-even point is when the revenues received equal the costs, and therefore no profit has been made. In order to have profit, or increase profits, a business must ensure that its costs are less than its revenues.