economy

cost definition

The term cost refers to the amount or figure that represents a product or service according to the investment of both material, labor, training and time that has been needed to develop it. As can be seen, the term is characteristic and central to the economic sciences since it is the point from which any type of exchange or economic relationship between two parties starts. The cost is what the person who wants to receive a product or service must pay in order to have it under their possession or at their disposal.

Today, the cost of a product or service is expressed in most situations in terms of money or capital (which can vary in currency according to the region or space in which the exchange takes place). However, in ancient times and for a long time, Humanity carried out its commercial and economic exchanges through the delivery of other elements such as spices. The cost of the products was then set at the equivalent of the cost of a given quantity of spices.

The cost of a product or service is not a random number. Normally, and so that the one who sells it can obtain a minimum profit, he must take into account different elements that are added and that make its development. In this sense, the cost of a pen can be not only the material in which it is made, but also the labor, the time invested in its realization, the knowledge or training that the person should have to carry it out. , transportation to the place of sale, packaging, etc.

Today, due to the development of impressive consumer markets that request more and more products, minute by minute, prices remain accessible in the sense that all that cost is shared by the large number of items produced and sold. Otherwise, the final cost of a pen would be much higher than what is actually paid for it.

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