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Cost

KAWST /kɒst/

nounverbA2

GeneralFormal

(noun) An amount that has to be paid or spent to get or obtain something. (verb) To require the payment of (a specified sum of money) before it can be acquired or done.

In economics, 'cost' can be explicit (monetary outlay) or implicit (opportunity cost). It's crucial to distinguish between different types of costs (fixed, variable, marginal, sunk).

The story behind the word. The word 'cost' comes from the Old French coste, meaning 'price, expense.' This, in turn, is related to the Latin constare, which meant 'to stand at a price' or 'to stand firm.' It implies that something has a fixed value or requires a certain expenditure. From medieval markets to modern economics, 'cost' has always been about the resources or value given up in exchange for something else.

Word relationships

expense: 'Expense' is often used interchangeably with 'cost,' but 'cost' can also refer to the value of resources used, not just money spent.
price: 'Price' is what a buyer pays, while 'cost' is what a seller incurs to produce or acquire something.

benefit: A gain or advantage, the opposite of a cost.
profit: Financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.

Commonly confused with

price: 'Price' is the amount charged to the customer; 'cost' is the amount incurred by the producer or seller.

Word family

costly (adjective): Requiring a large amount of money, time, or effort.
costing (noun): The process of estimating or determining the cost of something.

Collocations

production cost
fixed cost
variable cost
marginal cost
opportunity cost
cut costs
high cost
low cost

Idioms & expressions

at all costs
count the cost
cost an arm and a leg

Example sentences

"The cost of living has increased significantly in urban areas over the past decade." Personal finance.
"The company needs to reduce its production costs to remain competitive in the market." Business accounting.

Memory hook

Think of the 'COST' of a COAT – it's the money you have to pay to get it. COST = What you pay

When not to use

While 'cost' can refer to a negative consequence, in economics, it primarily refers to the resources expended or value foregone to acquire or produce something.

Fun facts

The concept of 'sunk costs' refers to costs that have already been incurred and cannot be recovered, and economists advise ignoring them when making future decisions.

Explore more words

expense, expenditure, budget, Cost of living, economize, debt