{"id":3802,"date":"2020-03-04T15:01:29","date_gmt":"2020-03-04T15:01:29","guid":{"rendered":"https:\/\/commerceiets.com\/?p=3802"},"modified":"2020-03-04T15:01:29","modified_gmt":"2020-03-04T15:01:29","slug":"concept-of-costs","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/concept-of-costs\/","title":{"rendered":"CONCEPT OF COSTS"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_72 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/concept-of-costs\/#WHAT_IS_COST\" title=\"WHAT\nIS COST?\">WHAT\nIS COST?<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/concept-of-costs\/#CONCEPT_OF_COSTS\" title=\"CONCEPT OF COSTS\">CONCEPT OF COSTS<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1 class=\"has-text-align-center wp-block-heading\" id=\"what-is-cost\"><span class=\"ez-toc-section\" id=\"WHAT_IS_COST\"><\/span><strong>WHAT\nIS COST?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h1>\n\n\n\n<p>Cost refers to an amount to be paid or given up for\nacquiring any resource or service.<\/p>\n\n\n\n<p>In economics, cost can be defined as a monetary valuation\nof efforts, material, resources, time and utilities consumed, risks incurred,\nand opportunity forgone in the production of a good or service.<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"concept-of-costs\"><span class=\"ez-toc-section\" id=\"CONCEPT_OF_COSTS\"><\/span><strong>CONCEPT OF COSTS<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are various types or concept of costs which are as follows:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"580\" height=\"351\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-4.png\" alt=\"\" class=\"wp-image-3804\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-4.png 580w, https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-4-300x182.png 300w\" sizes=\"auto, (max-width: 580px) 100vw, 580px\" \/><figcaption><strong>CONCEPT OF COSTS<\/strong><\/figcaption><\/figure>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>REAL COST<\/strong><\/p>\n\n\n\n<p>The term \u201creal cost of production\u201d refers to the physical\nquantities of various factors used in producing a commodity.<\/p>\n\n\n\n<p>It is a philosophical concept which refers to all those\nefforts and sacrifices undergone by various members of the society to produce a\ncommodity. <\/p>\n\n\n\n<p>Prof. Marshall has called these costs as the \u201cSocial\nCosts of Production.\u201d<\/p>\n\n\n\n<p><strong><em>According to Marshall<\/em><\/strong><\/p>\n\n\n\n<p><em>\u201cReal costs are the exertion of\nall the different kinds of labour that are directly or indirectly involved in\nmaking it together with the abstinence rather than the waiting required for\nsaving the capital used in making it, all these efforts and sacrifices together\nwill be called the real cost of production of the commodity.\u201d<\/em><\/p>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>MONEY COST<\/strong><\/p>\n\n\n\n<p>Money cost is also known as the nominal cost. It is\nnothing but the expenses incurred by a firm to produce a commodity. For\ninstance, the cost of producing 200 chairs is Rs. 10000, and then it will be\ncalled the money cost of producing 200 chairs.<\/p>\n\n\n\n<p>The various\nkinds of money costs are as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Depreciation and obsolescence\ncharges.<\/li><li>Power fuel charges.<\/li><li>Wages and salaries.<\/li><li>Cost of machinery, raw material\netc.<\/li><li>Expenses on advertising and\npublicity,<\/li><li>Interest on capital.<\/li><li>Expenses on electricity.<\/li><li>Insurance charges.<\/li><li>Transport costs.<\/li><li>Packing charges.<\/li><li>All types of taxes viz; property\ntax, license fees, excise duty.<\/li><li>Rent on land.<\/li><\/ul>\n\n\n\n<p>Therefore, money costs relate to money outlays by a firm\non factors of production which enable the firm to produce and sell a product.\nEvery producer is interested only in nominal costs. <\/p>\n\n\n\n<p><strong><em>According to Prof. Hansen<\/em><\/strong><\/p>\n\n\n\n<p><em>\u201cThe money cost of producing a\ncertain output of a commodity is the sum of all the payments to the factors of\nproduction engaged in the production of that commodity.\u201d<\/em><\/p>\n\n\n\n<p><strong>Moreover, total costs of a firm\ninclude both:<\/strong><\/p>\n\n\n\n<p>(i) Explicit costs.<\/p>\n\n\n\n<p>(ii) Implicit costs.<\/p>\n\n\n\n<p><strong>(a)\nExplicit Costs:<\/strong><strong><\/strong><\/p>\n\n\n\n<p>Explicit costs refer to all those expenses made by a firm\nto buy goods directly. They include, payments for raw material, taxes and\ndepreciation charges, transportation, power, high fuel, advertising and so on.<\/p>\n\n\n\n<p><strong><em>According to Leftwitch, <\/em><\/strong><\/p>\n\n\n\n<p><em>\u201cExplicit costs are those cash\npayments which firms make to outsiders for their services and goods.\u201d <\/em><\/p>\n\n\n\n<p>Wages to workers, money paid for raw materials and\nsemi-finished goods, various fixed costs etc. are examples of explicit costs.\nThe producer takes money out of his pocket and pays to others. These are\npayments to attract resources from other uses to the use made by a particular\nproducer. They are also known as Accounting Costs or Historical Costs.<\/p>\n\n\n\n<p><strong>(b) Implicit Costs:<\/strong><\/p>\n\n\n\n<p>Implicit costs are the imputed value of the entrepreneur\u2019s\nown resources and Services. In fact, these costs refer to the implied or\nunnoticed costs. They include the interest on his own capital, rent on his\nland, wages of his own labour etc. Moreover, these costs go to the entrepreneur\nhimself and are not recorded in practice. <\/p>\n\n\n\n<p><strong><em>According to Leftwitch<\/em><\/strong><\/p>\n\n\n\n<p><em>\u201cImplicit costs are the costs of\nself-owned, self employed resources.\u201d<\/em><\/p>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>OPPORTUNITY\nCOSTS<\/strong><\/p>\n\n\n\n<p>Opportunity cost is the cost of next best alternative\nforegone. The opportunity cost is also known as \u2018transfer cost\u2019 or \u2018alternate\ncost\u2019.<\/p>\n\n\n\n<p><strong><em>According to Prof. Lipsey <\/em><\/strong><\/p>\n\n\n\n<p><em>\u201cThe opportunity cost of using\nany factor is what is currently forgone by using it.\u201d<\/em><\/p>\n\n\n\n<p><strong><em>According to Mrs. Joan Robinson<\/em><\/strong><\/p>\n\n\n\n<p><em>\u201cThe price which is necessary to\nretain a given unit of factor in a certain industry may be called its transfer\nearning or transfer price.\u201d<\/em><\/p>\n\n\n\n<p><strong><em>According to Prof. Benham<\/em><\/strong><\/p>\n\n\n\n<p><em>\u201cThe opportunity cost of anything is the next best alternative that\ncould be produced instead by the same factors or by an equivalent group of\nfactors, costing the same amount of money.\u201d<\/em><em><\/em><\/p>\n\n\n\n<p>For instance, a farmer can grow both the potatoes as well\nas garlic on a farm. On a farm of two hectares, the farmer grows only potatoes\nand foregoes the production of garlic. Suppose, the price of the quantity of\npotatoes is Rs. 5000, the opportunity cost of producing the garlic will be Rs.\n5000. In this way, the price of garlic which he has to forego to produce is\ncalled the opportunity cost of potatoes.<\/p>\n\n\n\n<p><strong>Assumptions of Opportunity Costs:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Perfect competition and full\nemployment prevail in the economy.<\/li><li>Factors of production are fixed.<\/li><li>Only-two goods can be produced in\nthe economy.<\/li><\/ul>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>ACCOUNTING\nCOSTS<\/strong><\/p>\n\n\n\n<p>Accounting\ncosts are those for which the entrepreneur pays direct cash for procuring\nresources for production. These include costs of the price paid for raw\nmaterials and machines, wages paid to workers, electricity charges, the cost\nincurred in hiring or purchasing a building or plot, etc. Accounting costs are\ntreated as expenses. Chartered accountants record them in financial statements.<\/p>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>SUNK COST<\/strong><\/p>\n\n\n\n<p>Sunk costs\nare costs which the entrepreneur has already incurred and he cannot recover\nthem again now. These include money spent on advertising, conducting research,\nand acquiring machinery.<\/p>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>ECONOMIC\nCOSTS<\/strong><\/p>\n\n\n\n<p>There are\ncertain costs that accounting costs disregard. These include money which the\nentrepreneur forgoes but would have earned had he invested his time, efforts\nand investments in other ventures. For example, the entrepreneur would have\nearned an income had he sold his services to others instead of working on his\nown business.<\/p>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>DIRECT COSTS<\/strong><\/p>\n\n\n\n<p>Direct\ncosts are related to a specific process or product. They are also called\ntraceable costs as we can directly trace them to a particular activity, product\nor process. They can vary with changes in the activity or product. <\/p>\n\n\n\n<p>Examples of\ndirect costs include manufacturing costs relating to production, customer\nacquisition costs pertaining to sales, etc.<\/p>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>INDIRECT COSTS<\/strong><\/p>\n\n\n\n<p>Indirect\ncosts, or untraceable costs, are those which do not directly relate to a\nspecific activity or component of the business. <\/p>\n\n\n\n<p>For example,\nan increase in charges of electricity or taxes payable on income. Although we\ncannot trace indirect costs, they are important because they affect overall\nprofitability.<\/p>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>PRIVATE COSTS<\/strong><\/p>\n\n\n\n<p>These costs\nare incurred by the business in furtherance of its own objectives.\nEntrepreneurs spend them for their own private and business interests. For\nexample, costs of&nbsp;<a href=\"https:\/\/www.toppr.com\/guides\/geography\/manufacturing-industries\/what-are-manufacturing-industries\/\" target=\"_blank\" rel=\"noopener\">manufacturing<\/a>,\nproduction, sale, advertising, etc.<\/p>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>SOCIAL COSTS<\/strong><\/p>\n\n\n\n<p>As the name\nsuggests, it is the society that bears social costs for private interests and\nexpenses of the business. These include social resources for which the firm\ndoes not incur expenses, like atmosphere, water resources and environmental\npollution.<\/p>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>PRODUCTION COSTS<\/strong><\/p>\n\n\n\n<p>Production costs have been called as the total amount of\nmoney spent in the production of goods. They include the cost of raw materials\nand freight thereon, the costs of manufacture, i.e., the wages of workers\nengaged in the manufacture of the commodity and salaries of the manager and\nother office staff including those of peons etc.<\/p>\n\n\n\n<p>They also include and cover other overheads expenses\nlike\u2014rent, interest on capital, taxes, insurance and other incidental expenses\nlike\u2014cost of repairs and replacements. They include both prime costs and\nsupplementary costs.<\/p>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>SELLING COSTS<\/strong><\/p>\n\n\n\n<p>Selling costs are the costs of marketing, advertisement\nand salesman\u00adship. These costs are incurred to attract customers, expand market\nand capture more business and retain the existing business. These costs are the\nessential costs of the competitive economy.<\/p>\n\n\n\n<p>They are especially important in the case of imperfect\ncompetition in which goods are not identical but substitutes. The manufacturers\nresort to what is called product differentiation in order to change the demand\ncurve of a particular seller to his advantage.<\/p>\n\n\n\n<p>Selling costs\nare an important aspect of an imperfect market and have no place in a fully\ncompetitive market where the dealers are supposed to be fully aware of the\nquality of the goods and the conditions of the market.<\/p>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>SEMI VARIABLE COSTS<\/strong><\/p>\n\n\n\n<p>Semi-variable costs are those which have the\ncharacteristics of fixed costs and variable costs, both. These costs vary with\nproduction but not in direct proportion to volume. Although semi-variable costs\nare neither wholly fixed not&nbsp;wholly variable in nature, they must ultimately\nbe separated&nbsp;into fixed and variable components for the purpose of\nplanning and&nbsp;control.<\/p>\n\n\n\n<p>The fixed part of the\nsemi-variable cost usually represents a minimum fee for making a particular\nitem or service available. The variable portion is the cost charged for actual\nusing the service.<\/p>\n\n\n\n<p>Examples of semi-variable costs\ninclude repairs, monthly telephone charges, indirect materials, indirect labor,\nfuel and power. Telephone charges, for example, are made up of a service charge\nplus extra charges for extra telephones and long-distance calls.<\/p>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>FIXED COSTS<\/strong><\/p>\n\n\n\n<p>Fixed costs are costs that are independent of\noutput. These remain constant throughout the relevant range and are usually\nconsidered sunk for the relevant range (not relevant to output decisions).\nFixed costs often include rent, buildings, machinery, etc.<\/p>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>VARIABLE COSTS<\/strong><\/p>\n\n\n\n<p>Variable costs are costs that vary with output. Generally variable costs increase at a constant rate relative to labor and capital. Variable costs may include wages, utilities, materials used in production, etc.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/demand\/\">Theory of Demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-demand\/\">Law of Demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/demand-function\/\">Demand Function<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/exceptions-of-law-of-demand\/\">Exceptions of law of demand<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/elasticity-of-demand\/\">Elasticity of demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/change-in-demand\/\">Change in demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/price-elasticity-of-demand\/\">Price elasticity of demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-law-of-demand-and-elasticity-of-demand\/\">Law of demand Vs Elasticity of demand<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/factors-affecting-price-elasticity-of-demand\/\">Factors affecting price elasticity of demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/production-function\/\">Production function<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-short-run-long-run-production-function\/\">Short run vs long run production function<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-variable-proportions\/\">Law of variable proportions<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/types-of-demand\/\">Types of demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/managerial-economics\/\">Managerial economics<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/characteristics-of-managerial-economics\/\">Characteristics of managerial economics<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/scope-of-managerial-economics\/\">Scope of managerial economics<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/utility-analysis\/\">Utility analysis<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-diminishing-marginal-utility\/\">Law of diminishing marginal utility<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-equi-marginal-utility\/\">Law of equi marginal utility<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/consumer-equilibrium\/\">Consumers Equilibrium<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/indifference-curve-analysis\/\">Indifference curve analysis<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/consumer-equilibrium-using-indifference-curve-analysis\/\">Consumer equilibrium using indifference curve analysis<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/relationship-between-tp-ap-and-mp\/\">Relationship between TP, AP and MP<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-increasing-returns\/\">Law of increasing returns<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/law-of-diminishing-returns\/\">Law of diminishing returns<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-constant-returns\/\">Law of constant returns<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/returns-to-scale\/\">Returns to Scale<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/economies-and-diseconomies-of-scale\/\">Economies and diseconomies of scale<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/concept-of-costs\/\">Concept of costs<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/relationship-between-ac-and-mc\/\">Relationship between AC and MC<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/traditional-theory-of-cost\/\">Traditional theory of costs<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/modern-theory-of-cost\/\">Modern theory of costs<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/explicit-vs-implicit-costs\/\">Explicit vs Implicit costs<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/revenue\/\">Revenue<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/perfect-competition\/\">Perfect competition<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/monopoly-meaning\/\">Monopoly<\/a>&nbsp;<\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/price-discrimination\/\">Price discrimination<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-perfect-competition-and-monopoly\/\">Difference between perfect competition and monopoly<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/perfect-and-monopolistic-competition\/\">Perfect Vs Monopolistic competition<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/monopoly-and-monopolistic-competition\/\">Monopoly and monopolistic competition<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/product-differentiation-strategy\/\">Product differentiation strategy<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/monopolistic-competition\/\">Monopolistic competition<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/national-income-in-india\/\">National Income in India<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/measurement-of-national-income\/\">Measurement of national income in India<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/consumption-function\/\">Consumption function<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/keynesian-psychological-law-of-consumption\/\">Keynes Psychological law of consumption<\/a><\/td><td><\/td><td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noreferrer noopener\">CONNECT ON LINKEDIN<\/a><\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"266\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-1024x266.jpg\" alt=\"CONCEPT OF COSTS\" class=\"wp-image-787\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-1024x266.jpg 1024w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-300x78.jpg 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-768x199.jpg 768w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-1536x398.jpg 1536w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize.jpg 1920w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>CONCEPT OF COSTS<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>WHAT IS COST? Cost refers to an amount to be paid or given up for acquiring any resource or service. In economics, cost can be defined as a monetary valuation of efforts, material, resources, time and utilities consumed, risks incurred, and opportunity forgone in the production of a good or service. CONCEPT OF COSTS There&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/concept-of-costs\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;CONCEPT OF COSTS&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":3806,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[113,92],"tags":[],"class_list":["post-3802","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-managerial-economics","category-micro-economics"],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3802","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=3802"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3802\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/3806"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=3802"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=3802"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=3802"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}