Definition of cost

1. sacrifice, measured by the price paid, to acquire, produce, or maintain goods or services. Prices paid for materials, labor, and factory overhead in the manufacture of goods are costs.
2. an asset. The term cost is often used when referring to the valuation of a good or service acquired. When it is used in this sense, a cost is an asset.

The concepts of cost and expense are often used interchangeably. When the benefits of the acquisition of the goods or services expire,the cost becomes an expense or loss. An expenseis a cost with expired benefits. A lossis an expense (expired cost) with no related benefit.

amount of money that must be paid to acquire something; purchase price or expense.